The Kansas City Business Journal Features Braden Perry in Phasing Out Rate-Setting LIBOR Article
The Kansas City Business Journal quoted Braden Perry, among other experts, in an article on the phasing out rate-setting LIBOR and the impact it could have on lenders and borrowers. The London Interbank Offered Rate (LIBOR) is a standard benchmark that determines interest rates for more than $200 trillion of loans in the United States. Banks in the U.S. are phasing out LIBOR in June of 2023, forcing Kansas City banks to start revisiting thousands of area loans involving consumers and businesses.
“Those contracts will need to be reviewed systematically for the fallback provisions, which specify contract terms in case LIBOR is unavailable,” said Braden Perry, a partner at Mission-based Kennyhertz Perry LLC. “If the period of unavailability is brief, as envisioned when the contracts were drafted, the resulting losses and gains are manageable. But if fallback terms are used long term or for the remaining life of the contract, the economic impact is likely to be significant for one of the parties.”
Login to the Kansas City Business Journal to view the full article: https://www.bizjournals.com/kansascity/news/2021/08/06/libor-elimination-sofr-loan-contracts.html
About Kennyhertz Perry’s Financial Services practice group:
Kennyhertz Perry integrates broad regulatory expertise, including compliance and enforcement, with the transactional practices to which that expertise is critical. We are called upon by businesses who need help navigating current and future regulatory challenges stemming from the global financial crisis. To assist our clients in understanding the issues that will affect their industries, entities and transactions, we understand the impact of regulations and requirements of both The Dodd-Frank Wall Street Reform and Consumer Protection Act and a wide variety of U.S. and foreign regulatory reforms targeting investment business and market structures, alternative investment fund managers, private equity and others, central clearing and exchange-trading of derivatives, market abuse and insider dealing, capital regimes, and commodity derivatives.
Kennyhertz Perry attorneys also have broad BSA/AML experience across the spectrum of bank and non-bank financial institutions. These include traditional chartered banks, broker-dealers, commodity trading advisors, money transmitters, non-bank lenders, and virtual currency businesses. We are experienced in counseling and drafting BSA/AML practices, policies, and procedures. Our combined knowledge and skill permit us to anticipate potential problems before they become serious issues and assist clients in responding effectively to regulatory and law enforcement criticisms or inquiries.
Kennyhertz Perry regularly counsels lenders, investment advisers, broker-dealers, and fund managers on the laws, rules, and regulatory developments affecting their business, including regulatory requirements, risk management, licensing and registration, sales and marketing practices and materials, manuals and training, day-to-day compliance.
Kennyhertz Perry, LLC is a business and litigation law firm representing clients in highly regulated industries. The firm was founded by two veteran Kansas City attorneys, John Kennyhertz and Braden Perry. To learn more about the firm, visit kennyhertzperry.com.
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