Some banks have considered no longer using Libor as a benchmark for interest rates on loans. Intercontinental Exchange Inc., which took over administering the measure earlier this year, has implemented new licensing fees, according to the American Bankers Association.
Although the extent at which ICE will apply the new fees is still unclear, they seem to be a result of essentially all uses of the benchmark, including a bank having a single old loan on their books to them participating in syndications or signing derivatives agreements, said Denyette DePierro, senior counsel at ABA, in a phone interview with Bloomberg
However, banks that contribute Libor rates to ICE, including JPMorgan Chase & Co., Bank of America Corp. and Barclays Plc, won't be effected by the new fees, according to ICE.
During the worldwide financial crisis, a surge in the rate led some companies to switch pricing on corporate loans to using a method called base rates, which make use of Federal Funds Rates, or "prime rates" established by individual banks and Eurodollar rates.
Meanwhile, Brevan Howard Asset Management LLP has rehired Chris Cecere. The Wall Street Journal has reported that Cecere was accused by Japanese authorities for allegedly attempting to rig Libor in 2011, citing insiders with knowledge of the matter, according to Reuters.
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