Transition and Readiness Overview: LIBOR, CDOR, CORRA and more

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By Lloyd Sebastian

July 2020

Amid the financial crisis of 2008, The Wall Street Journal began reporting on a long-running scheme where employees at certain banks were attempting to manipulate the London Interbank Offered Rate (LIBOR), by coordinating their submission of the interest rate quotations that underpin the rate. Multiple investigations by national regulators and central banks were launched, resulting in billions of dollars in fines, and dozens of lawsuits and settlements.

As a result, panel banks became reluctant to continue making London Interbank Offered Rate (LIBOR) submissions, prompting the Financial Conduct Authority (FCA) to examine alternative rates that banks could utilize in lieu of LIBOR.

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CIBC Mellon is a Canadian company exclusively focused on the investment servicing needs of Canadian institutional investors and international institutional investors into Canada. Founded in 1996, CIBC Mellon is 50-50 jointly owned by The Bank of New York Mellon (BNY Mellon) and Canadian Imperial Bank of Commerce (CIBC). CIBC Mellon's investment servicing solutions for institutions and corporations are provided in close collaboration with our parent companies, and include custody, multicurrency accounting, fund administration, recordkeeping, pension services, exchange-traded fund services, securities lending services, foreign exchange processing and settlement, and treasury services.

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