Friedman Kaplan Forms LIBOR Transition Task Force

January 2, 2019

Friedman Kaplan has formed a LIBOR Transition Task Force, led by litigation partner Anne Beaumont, to study and prepare for the expected cessation of the London Interbank Offered Rate (LIBOR), which will occur no later than the end of 2021—and perhaps sooner.  Given LIBOR’s pervasive use, the consequences of its permanent discontinuation will be felt—for better or worse—throughout the financial markets. As one market participant recently observed, “a misstep could have substantial consequences for investors globally.”

The task force also includes corporate partners Gregg Lerner and Asaf Reindel, litigation partner Andrew Goldwater, and white-collar partner Eric Corngold.  The group is studying market developments, news coverage and analysis of the issues, as well as meeting with industry experts and clients to deepen the firm’s knowledge about and understanding of the issues.  The task force ultimately aims to help clients both to prepare for the transition and to bring or defend against transition-related claims, where necessary.

“LIBOR transition is the Y2K bug of the financial markets, in that LIBOR is embedded everywhere, including in lots of unexpected places, and the transition has the potential to cause havoc if not handled properly.  Lots of people and resources need to come together if it is to be a non-event like Y2K,” said Beaumont, adding, “One major difference, of course, is that it’s uncertain when the transition will occur, and it’s unclear at this point that existing efforts at transition planning are going to put the necessary measures in place before LIBOR becomes unusable.”

For more from Ms. Beaumont on LIBOR Transition click here.