On Friday, December 16, the Board of Governors of the Federal Reserve System (Board) adopted Regulation ZZ to implement the Adjustable Interest Rate (LIBOR) Act (Act). The Act was approved by Congress on March 15, to address references to LIBOR, formerly known as the Lender Interbank Offered Rate, in contracts that are governed by US law; will not mature before June 30, 2023; and most importantly, will lack fallback provisions providing for a clearly defined practical replacement for LIBOR. The final regulation is substantially similar to the proposal made in July. Continue reading >