FCA’s synthetic Libor plan could trigger US legal disputes

Paul Forrester is featured in this article.

"The answer will depend on the language of the fallback," says Paul Forrester, partner at Mayer Brown. "If contracts refer to the Libor page and synthetic Libor will be published on that page, it would satisfy the provision. If it's not, there's a more open question about what the outcome would be."

Forrester says litigation may be avoided as the economic consequences of contracts continuing on synthetic Libor may be significant enough to encourage parties to amend existing contracts before fallbacks trigger.