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New Article Created

1 year ago
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ARRC Proposes New York Legislation to Reduce LIBOR Litigation Risk

Hogan Lovells US LLP -

Hogan Lovells US LLP - In an effort to provide more clarity and certainty with respect to the LIBOR transition – and in particular to reduce the significant litigation risk associated with the transition -- the Alternative Reference Rates Committee (ARRC), a group of private-market participants convened by the Federal Reserve Board and the New York Fed, recently announced that it was proposing New York State legislation.

Authored by: Marc Gottridge

New Article Created

1 year ago
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A look ahead: Potential constitutional challenges to the proposed New York legislation for U.S. dollar LIBOR contracts

Hogan Lovells US LLP -

Hogan Lovells US LLP - Hundreds of thousands of financial contracts (including floating rate securities, bilateral and syndicated loans, interest rate swaps and home mortgages), with an estimated $200 trillion notional value, incorporate U.S. Dollar LIBOR. Many will remain in effect beyond 2021, yet lack robust fallbacks to automatically replace LIBOR after it no longer exists.

Authored by: Marc Gottridge, Charles Barrera Moore

New Article Created

1 year ago
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Addressing legal implications of the Silicon Valley (SVB) and Signature Bank Collapses

Hogan Lovells US LLP -

Hogan Lovells - The Hogan Lovells U.S./UK multi-practice SVB Task Force provides guidance to those affected by this incident and other issues that will arise in connection with them. We have launched the Addressing the legal implications of the Silicon Valley (SVB) and Signature Bank collapses Topic Center, to provide a central location for all FAQs, a recording of the March 13th Implications of the fall of Silicon Valley Bank (SVB) webinar, useful resources, and contact info of our SVB Task Force members.

Authored by: Sharon Lewis, Elizabeth (Liz) Boison, Sara C. Lenet, Jonathan Chertkow, Rachel Kent, Benjamin Andrew Fleming, and William (Bill) M. Regan

New Article Created

1 year ago
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Where The Post-Libor Litigation Tsunami Will Hit

Hogan Lovells US LLP -

Hogan Lovells - It is rare for a banking regulator to warn the industry of a "DEFCON 1 litigation event," a "situation that invites litigation" that "would be on a massive scale." But that's precisely what Michael Held, executive vice president and general counsel of the Federal Reserve Bank of New York, recently did. Held sounded a litigation tsunami warning over the "trillions of dollars of existing contracts" that incorporate the Libor rate and extend beyond Libor's anticipated permanent cessation at the end of 2021, but lack "effective fallbacks" to replace Libor. This article addresses: (1) which products are subject to the greatest post-Libor litigation risk and (2) what kinds of claims we can expect.

Authored by: Marc Gottridge