U.S. regulators urge financial firms to quickly ditch Libor rate benchmarks

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Financial Stability Board chair and Federal Reserve Vice Chairman for Supervision Randal Quarles addresses the Economic Club of New York in New York City, U.S., October 18, 2018. REUTERS/Brendan McDermid

U.S. financial regulators urged market participants on Friday to accelerate their efforts to detach financial products from Libor interest rate benchmarks, while casting doubt on new benchmarks built to compete with their preferred replacement.

Federal Reserve Vice Chair Randal Quarles emphasized there is “no path forward” for Libor, which is being scrapped after numerous banks were fined for manipulating it, and that firms have no reason to delay moving derivatives and other market contracts to the new Secured Overnight Financing Rate.

“The deniers and laggards are engaging in magical thinking,” Quarles said during a meeting of the Financial Stability Oversight Council, a regulatory panel. “Libor is over.”

A host of senior U.S. officials, including…

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