LIBOR is a hugely important interest rate benchmark, used globally and embedded in over $200 trillion of financial contracts. It has its notable shortcomings, including having been subject to scandalous attempts at manipulation. Financial regulators, notably the New York Fed, want it to disappear and be replaced by another index. But can the regulators succeed in their effort? Will LIBOR disappear and be replaced? By SOFR or something else? Or will it survive, perhaps as one of multiple competing benchmarks?
Dr. Oonagh McDonald thoroughly explores LIBOR’s evolution, scandals, and the issues of its future in her new book, “Holding Bankers to Account.” Oonagh will present the lessons of history and the state of current debates. Gary Kalbaugh of ING Financial and Columbia Law School and Alex Pollock of the R Street Institute will be discussants.