Kevin Trabaris, a partner in Culhane Meadows PLLC’s Chicago office and chair of the firm’s Financial Services Group, presents the results on Law360 of a survey the group conducted on the current state of the financial industry’s transition from the use of LIBOR as a rate index.
The March 2018 survey polled a number of the firm’s financial clients to determine the state of their preparation for the transition away from LIBOR.
He writes –
The fact that LIBOR is to be eliminated has been a certainty known by business people and attorneys working in the financial service market for a while. An interesting question is how far banks and other LIBOR-reliant financial institutions have prepared for its demise.
After discussion of the results of the survey, Trabaris concludes:
We would argue that it is time now prepare a plan for the LIBOR issue, including assessing the amount of an institution’s exposure, whether LIBOR language should be amended now on deals maturing after 2021(or earlier) and addressing the technology hurdles with applying a new rate.
Kevin Trabaris focuses his practice on commercial finance matters.