Legacy LIBOR-linked debt contracts that are lacking or have inadequate fallback provisions could drop significantly in value and, depending on the extent to which large banks are affected, could impiar lending, according to Christopher Erickson, professor of economics at NMSU. Echoing comments made by New York Fed General Counsel Michael Held in years, Erickson said contracts with inadequate fallback language will likely trigger a wave of lawsuits.
Legacy LIBOR-linked debt contracts that are lacking or have inadequate fallback provisions could drop significantly in value and, depending on the extent to which large banks are affected, could impiar lending, according to Christopher Erickson, professor of economics at NMSU. Echoing comments made by New York Fed General Counsel Michael Held in February, Erickson said contracts with inadequate fallback language will likely trigger a wave of lawsuits.