Banks Brace for ‘World’s Largest Corporate Action’ as Libor Switch Looms

Beset by scandal, reputationally bankrupt and now increasingly under pressure, Libor is nonetheless still the key reference rate used in nearly all major financial instruments globally. As regulators have mandated a shift away from the benchmark by 2021, however, the industry is beginning to realize the scale of the challenge before it.

Part of the problem is that replacing Libor, an averaged interbank offered rate (IBOR) governed by submissions from panel banks, with an overnight rate