The Structured Finance Association (SFA) today applauded the House Financial Services Committee adopting and favorably reporting the Adjustable Interest Rate (LIBOR) Act of 2021 (H.R. 4616) to the full House of Representatives by voice vote. The legislation will ease the transition away from the London Inter-Bank Offered Rate (LIBOR), which is the benchmark index currently used, for example, to determine the interest rate that consumers pay on some credit cards, home equity lines of credit, reverse mortgages, and private student loans.
“Our membership has long advocated for federal legislation to ease the transition away from LIBOR, and we are pleased with the committee’s action today,” said Michael Bright, CEO of the Structured Finance Association. “Only Congress has the power to ensure an economically neutral outcome without years of court wrangling and confusion. Enactment of this bill is the best way to end this saga once and for all, and we encourage the full House to bring the legislation to the floor for a vote in a timely manner.”
SFA has been a leading voice in the debate over the transition away from LIBOR, including in an op-ed for the Financial Times written by CEO Michael Bright calling for the passage of federal legislation. Ahead of the committee vote today, SFA was joined by other leading financial services industry groups in announcing support for the bill.