At a hearing before the Senate Committee on Banking, Housing and Urban Affairs, Treasury Secretary Janet L. Yellen testified on the Financial Stability Oversight Council's 2021 Annual Report to Congress.
In a 415-9 vote, the U.S. House of Representatives passed the Adjustable Interest Rate (LIBOR) Act of 2021. The LIBOR Act will now move to the Senate for consideration.
At a hearing before the Senate Banking Committee, Alternative Reference Rates Committee Chair Thomas Wipf advocated for Congressional passage of uniform, federal legislation to address LIBOR legacy contract transition issues and "avoid the disruptions, market uncertainties, and confusion that would otherwise occur when LIBOR ends."
The U.S. House Committee on Financial Services voted to advance the "Adjustable Interest Rate (LIBOR) Act of 2021," which would establish a process for replacing LIBOR with the Secured Overnight Financing Rate in financial contracts that do not contain sufficient fallback provisions upon the cessation of LIBOR.
The U.S. House Financial Services Subcommittee on Investor Protection, Entrepreneurship and Capital Markets considered legislation and testimony concerning the transition from the London Inter-Bank Offered Rate.
