NY Fed President Calls For "Aggressive Action" For LIBOR Transition

Federal Reserve Bank of New York President William C. Dudley argued that "aggressive action" is needed across the financial industry to address market-wide issues concerning the global market transition away from LIBOR.

In his remarks at Bank of England's Markets Forum, Mr. Dudley expressed concern over "the great uncertainty over LIBOR's future and the risks to financial stability that would likely accompany a disorderly transition to alternative reference rates." He stated, "we need aggressive action to move to a more durable and resilient benchmark regime."

Mr. Dudley recounted the history and other factors that led to the need for the global markets to transition away from LIBOR. He emphasized that this transition represents a significant risk for firms "of all sizes," which should actively manage the risks in a way that is commensurate with their exposures.