Fed Issues Transition Guidance

  • The Federal Reserve Board issued supervisory letter SR 21-7. The letter provides supervisory guidance for examiners to consider when evaluating an institution’s plan to shift away from LIBOR
  • The firm is judged on six aspects: transition planning; financial exposure measurement and risk assessment, operational preparedness and controls; legal contract preparedness; communication; and oversight
  • There is also specific guidance for evaluating firms with less than USD 100 billion in total consolidated assets and firms with over USD 100 billion in total consolidated assets
  • https://www.federalreserve.gov/supervisionreg/srletters/SR2107.htm