Dr. George Moore Receives Outstanding Service Award
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LIBOR Transition: SOFR, So Good Implications of a New Reference Rate for Your Business • 2021
LIBOR transition: SOFR, so good Implications of a new reference rate for your business • 2021 Contents What is LIBOR? 2 What fallback language is currently in place? 16 Why does LIBOR have to go? 4 How will derivative contracts be impacted? 17 Who is driving the process? 5 How will loans and bonds be impacted? 19 How can LIBOR be replaced? 7 How is Wells Fargo contributing? 21 What should I know about SOFR? 9 Where can I get further information? 22 Why are repo transactions so important? 10 Contacts 22 How can SOFR fill LIBOR’s big shoes? 11 What is LIBOR? A brief history of the London Interbank Offered Rate The London Interbank Offered Rate (LIBOR) emerged in How is LIBOR set? the 1980s as the fast-growing and increasingly international financial markets demanded aconsistent rate to serve as • 11 – 16 contributor banks submit rates based on a common reference rate for financial contracts. A Greek theoretical borrowing costs banker is credited with arranging the first transaction to • The top 25% and bottom 25% of submissions are be based on the borrowing rates derived from a “set of thrown out reference banks” in 1969.¹ • Remaining rates are averaged together The adoption of LIBOR spread quickly as many market participants saw the value in a common base rate that could underpin and standardize private transactions. At first, the rate was self-regulated, but in 1986, the British 35 LIBOR rates published at 11:00 a.m. London Time Bankers’ Association (BBA), a trade group representing 5 currencies (USD, EUR, GBP, JPY, CHF) with the London banks, stepped in to provide some oversight. -
The Pulitzer Prizes 2020 Winne
WINNERS AND FINALISTS 1917 TO PRESENT TABLE OF CONTENTS Excerpts from the Plan of Award ..............................................................2 PULITZER PRIZES IN JOURNALISM Public Service ...........................................................................................6 Reporting ...............................................................................................24 Local Reporting .....................................................................................27 Local Reporting, Edition Time ..............................................................32 Local General or Spot News Reporting ..................................................33 General News Reporting ........................................................................36 Spot News Reporting ............................................................................38 Breaking News Reporting .....................................................................39 Local Reporting, No Edition Time .......................................................45 Local Investigative or Specialized Reporting .........................................47 Investigative Reporting ..........................................................................50 Explanatory Journalism .........................................................................61 Explanatory Reporting ...........................................................................64 Specialized Reporting .............................................................................70 -
Csl/19-28/Download
CFTC Letter No. 19-28 No-Action December 17, 2019 U.S. COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418-5000 Division of Clearing and Risk M. Clark Hutchison III Director Re: Staff No-Action Relief from the Swap Clearing Requirement for Amendments to Legacy Uncleared Swaps to Facilitate Orderly Transition from Inter-Bank Offered Rates to Alternative Risk-Free Rates Ladies and Gentlemen: This letter from the Division of Clearing and Risk (DCR) responds to a November 5, 2019 letter from the Alternative Reference Rates Committee (ARRC)1 on behalf of its members that are subject to certain Commodity Futures Trading Commission (CFTC or Commission) regulations.2 Among other things, ARRC requested no-action relief for failure to comply with certain provisions of the swap clearing requirement promulgated pursuant to section 2(h)(1)(A) of the Commodity Exchange Act (CEA) and codified in part 50 of Commission regulations when swap counterparties amend certain uncleared swaps as part of an industry-wide initiative to amend swaps that reference certain London Interbank Offered Rate (LIBOR) rates and other interbank offered rates (collectively with LIBOR, the IBORs)3 to reference specified risk-free rates (RFRs). ARRC’s request to DCR focuses on swaps that were executed prior to the compliance date on which swap counterparties were required to begin centrally clearing interest rate swaps (IRS) pursuant to the CFTC’s swap clearing requirement and thus were not required to be 1 Authorities representing U.S. banking regulators and other financial sector members, including the Commission, serve as non-voting ex officio members of the ARRC. -
FEDERAL FUNDS Marvin Goodfriend and William Whelpley
Page 7 The information in this chapter was last updated in 1993. Since the money market evolves very rapidly, recent developments may have superseded some of the content of this chapter. Federal Reserve Bank of Richmond Richmond, Virginia 1998 Chapter 2 FEDERAL FUNDS Marvin Goodfriend and William Whelpley Federal funds are the heart of the money market in the sense that they are the core of the overnight market for credit in the United States. Moreover, current and expected interest rates on federal funds are the basic rates to which all other money market rates are anchored. Understanding the federal funds market requires, above all, recognizing that its general character has been shaped by Federal Reserve policy. From the beginning, Federal Reserve regulatory rulings have encouraged the market's growth. Equally important, the federal funds rate has been a key monetary policy instrument. This chapter explains federal funds as a credit instrument, the funds rate as an instrument of monetary policy, and the funds market itself as an instrument of regulatory policy. CHARACTERISTICS OF FEDERAL FUNDS Three features taken together distinguish federal funds from other money market instruments. First, they are short-term borrowings of immediately available money—funds which can be transferred between depository institutions within a single business day. In 1991, nearly three-quarters of federal funds were overnight borrowings. The remainder were longer maturity borrowings known as term federal funds. Second, federal funds can be borrowed by only those depository institutions that are required by the Monetary Control Act of 1980 to hold reserves with Federal Reserve Banks. -
Mark Carney: the Evolution of the International Monetary System
Mark Carney: The evolution of the international monetary system Remarks by Mr Mark Carney, Governor of the Bank of Canada, to the Foreign Policy Association, New York, 19 November 2009. * * * In response to the worst financial crisis since the 1930s, policy-makers around the globe are providing unprecedented stimulus to support economic recovery and are pursuing a radical set of reforms to build a more resilient financial system. However, even this heavy agenda may not ensure strong, sustainable, and balanced growth over the medium term. We must also consider whether to reform the basic framework that underpins global commerce: the international monetary system. My purpose this evening is to help focus the current debate. While there were many causes of the crisis, its intensity and scope reflected unprecedented disequilibria. Large and unsustainable current account imbalances across major economic areas were integral to the buildup of vulnerabilities in many asset markets. In recent years, the international monetary system failed to promote timely and orderly economic adjustment. This failure has ample precedents. Over the past century, different international monetary regimes have struggled to adjust to structural changes, including the integration of emerging economies into the global economy. In all cases, systemic countries failed to adapt domestic policies in a manner consistent with the monetary system of the day. As a result, adjustment was delayed, vulnerabilities grew, and the reckoning, when it came, was disruptive for all. Policy-makers must learn these lessons from history. The G-20 commitment to promote strong, sustainable, and balanced growth in global demand – launched two weeks ago in St. -
Bulletin of the College of William and Mary in Virginia
Vol. 30, No. 4 Bulletin of the College of William and Mary April, 1936 CATALOGUE OF tKtie College of Wiilmm anb iWarp in liTirginia Two Hundred and Forty-Third Year 1935-36 Announcements , Session 1936-37 Williamsburg, Virginia 1936 Entered at the post office at Williamsburg, Virginia, July 3, 1926, under act of August 24, 1912, as second-class matter Issued January, February, March, April, June, August, November Digitized by the Internet Archive in 2011 with funding from LYRASIS IVIembers and Sloan Foundation http://www.archive.org/details/bulletinofcolleg304coll Wren Building—Front View Showing Lord Botetourt's Statue Vol. 30, No. 4 Bulletin of the College of William and Mary April, 1936 CATALOGUE OF tKfje College of l^illiam anb ifHarp in "Virginia Two Hundred and Forty-Third Year 1935-36 Announcements , Session 1936-37 Williamsburg, Virginia 1936 Entered at the post office at Williamsburg, Virginia, July 3, 1926, under act of August 24, 1912, as second-class matter Issued January, February, March, April, June, August, November CONTENTS Page Calendar 4 College Calendar 5 Board of Visitors 6 Standing Committees of the Board of Visitors 7 Officers of Administration S Officers of Instruction 9 Standing Committees of the Officers of Instruction 16 Alumni Association 18 College Societies and Publications 20 Athletics for Men 22 Athletics for Women 23 Charter of the College 24 History of College 35 Chronological History of the College 38 Priorities 40 Buildings and Grounds 41 Government and Administration 49 Expenses 52 Financial Aid 57 Admission -
Liquidity, Information, and the Overnight Rate
WORKING PAPER SERIES NO. 378 / JULY 2004 LIQUIDITY, INFORMATION, AND THE OVERNIGHT RATE by Christian Ewerhart, Nuno Cassola, Steen Ejerskov and Natacha Valla WORKING PAPER SERIES NO. 378 / JULY 2004 LIQUIDITY, INFORMATION, AND THE OVERNIGHT RATE 1 by Christian Ewerhart 2, Nuno Cassola 3, Steen Ejerskov 3 and Natacha Valla 3 In 2004 all publications will carry This paper can be downloaded without charge from a motif taken http://www.ecb.int or from the Social Science Research Network from the €100 banknote. electronic library at http://ssrn.com/abstract_id=564623. 1 The authors would like to thank Joseph Stiglitz for encouragement and for a helpful discussion on the topic of the paper. The paper also benefitted from comments made by attendents to the Lecture Series on Monetary Policy Implementation, Operations and Money Markets at the ECB in January 2004 and by participants of the joint ETH/University of Zurich quantitative methods workshop in April 2004. The opinions expressed in this paper are those of the authors alone and do not necessarily reflect the views of the European Central Bank. 2 Postal address for correspondence: Institute for Empirical Research in Economics,Winterthurerstrasse 30, CH-8006 Zurich, Switzerland. E-mail: [email protected]. 3 European Central Bank, D Monetary Policy, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany, e-mail: [email protected] © European Central Bank, 2004 Address Kaiserstrasse 29 60311 Frankfurt am Main, Germany Postal address Postfach 16 03 19 60066 Frankfurt am Main, Germany Telephone +49 69 1344 0 Internet http://www.ecb.int Fax +49 69 1344 6000 Telex 411 144 ecb d All rights reserved. -
How Did the Fed Funds Market Change When Excess Reserves Were Abundant? John P
FEDERAL RESERVE BANK OF NEW YORK ECONOMIC POLICY REVIEW SHORTER ARTICLE How Did the Fed Funds Market Change When Excess Reserves Were Abundant? John P. McGowan and Ed Nosal Volume 26, Number 1 March 2020 How Did the Fed Funds Market Change When Excess Reserves Were Abundant? John P. McGowan and Ed Nosal OVERVIEW he Federal Open Market Committee (FOMC) uses • The authors compare the Tthe federal funds rate as its policy rate to convey the Federal Reserve’s monetary stance of monetary policy, and has done so for decades. policy framework pre-crisis, Nominal changes in the rate are expected to be transmitted when reserves were scarce, with its framework post-crisis broadly to other financial markets to have the desired effect through early 2018, when on overall employment and inflation expectations in the reserves were abundant, and United States. analyze the related changes in Prior to the 2007 financial crisis, trading in the fed funds the federal funds market. market was dominated by banks.1 Banks managed the bal- • Pre-crisis, the fed funds ances—or reserves—of their Federal Reserve accounts by market was active and banks buying these balances from, or selling them to, each other. were the key participants. No These exchanges between holders of reserve balances at the Fed interest was paid on reserves are known as fed funds transactions. The amount of excess and the effective fed funds rate (EFFR) typically exhibited reserves in the banking system—total reserves minus total some day-to-day volatility. required reserves—was very small and banks actively traded Post-crisis, fed funds market fed funds in order to keep their reserves close to the required activity declined and foreign amount. -
Focus: Banks and Interest Rates
Focus: Banks and Interest Rates Focus Sheet FAST FACTS The Bottom Line There are a number of Interest rate decisions by individual banks different factors that and other financial institutions are business influence a bank’s decision to adjust its decisions made in a competitive marketplace. lending rates in addition to the Bank of Canada’s Target for the Overnight While the Bank of Canada’s Target for the Rate including: Overnight Rate does influence the pricing of credit, it does not set the interest rates that • Conditions in lending markets consumers pay on their loans or receive on their deposits. • Cost of funds in financial markets For example, between April 2020 and July • Credit worthiness of 2021, while both the Bank of Canada’s customers Target for the Overnight Rate and the banks’ prime rate had remained stable, effective interest rates on bank loans fell and currently 1 sit near historically low levels. How does the Bank of Canada affect bank lending rates? There is a common misconception that the interest rate on loans paid by bank customers is solely driven by the Bank of Canada’s Target for the Overnight Rate. The Bank of Canada’s Target for the Overnight Rate is one of several factors that influence bank lending rates. Lenders continually assess market conditions to determine the interest rates they charge on loans, whether for short- term or long-term loans. An individual bank’s decisions on lending rates are impacted by conditions in lending, markets, the cost of funds borrowed by banks in financial markets, and the credit worthiness of individual customers. -
Using Monetary Policy Rules in Emerging Market Economies*
Using Monetary Policy Rules in Emerging Market Economies* By John B. Taylor Stanford University December 2000 (Revised) Abstract: This paper shows that the use of monetary policy rules in emerging market economies has many of the same benefits that have been found in research and in practice in developed economies. For those emerging market economies that do not choose a policy of “permanently” fixing the exchange rate—perhaps through a currency board or dollarization, the only sound monetary policy is one based on the trinity of a flexible exchange rate, an inflation target, and a monetary policy rule. However, market conditions in emerging market economies may require modifications of the typical policy rule that has been recommended for economies with more developed financial markets. *This is a revised version of a paper presented at the 75th Anniversary Conference, “Stabilization and Monetary Policy: The International Experience,” November 14-15, 2000, at the Bank of Mexico. I thank the Bank of Mexico for inviting me to participate in the anniversary celebration and David Longworth for his very helpful comments based on research at the Bank of Canada. This paper draws on research conducted at the Monetary Policy Program of the Stanford Institute of Economic Policy Research and presented at Bank Indonesia and Bank of Japan conferences earlier this year. 1 For about ten years now, the use of monetary policy rules to evaluate and describe central bank policy actions has been growing and spreading rapidly. Monetary policy rules are now frequently used and referred to by financial market analysts, by economic researchers in universities, by the staffs of central banks, and by monetary policy makers themselves.1 Economics textbooks are placing greater emphasis on monetary policy rules as a way to teach students about monetary policy.2 Much of the economic research on policy rules during this period has focused—at least implicitly—on economies with highly developed asset markets, especially markets for debt and foreign exchange. -
Man, Myth, Or Monster
the magazine of the broadSIDE SUMMER 2009 Man, Myth, or Monster A COLLABORATIVE EXHIBITION PRESENTED BY THE LIBRARY OF VIRGINIA AND THE POE MUSEUM, page 2 broadSIDE THE INSIDE STORY the magazine of the LIBRARY OF VIRGINIA Nurture Your Spirit at a Library SUMMER 2009 Take time this summer to relax, recharge, and dream l i b r a r i a n o f v i r g i n i a Sandra G. Treadway hatever happened to the “lazy, hazy, crazy days of l i b r a r y b o a r d c h a i r Wsummer” that Nat King Cole celebrated in song John S. DiYorio when I was growing up? As a child I looked forward to summer with great anticipation because I knew that the e d i t o r i a l b o a r d rhythm of life—for me and everyone else in the world Janice M. Hathcock around me—slowed down. I could count on having plenty Ann E. Henderson of time to do what I wanted, at whatever pace I chose. Gregg D. Kimball It was a heady, exciting feeling—to have days and days Mary Beth McIntire Suzy Szasz Palmer stretched out before me with few obligations or organized activities. I was free to relax, recharge, enjoy, explore, and e d i t o r dream, because that was what summer was all about. Ann E. Henderson My feeling that summer was a special time c o p y e d i t o r continued well into adulthood, then gradually diminished Emily J. -
Art Meets Literature
ART MEETS LITERATURE ART MEETS LITERATURE ART MEETS LITERATURE ART MEETS LITERATURE AN UNDYING LOVE AFFAIR AN UNDYING LOVE AFFAIR AN UNDYING LOVE AFFAIR AN UNDYING LOVE AFFAIR 800 East Broad Street | Richmond, VA 23219 www.lva.virginia.gov 200 N. Boulevard | Richmond, Virginia USA 23220 www.VMFA.museum ART MEETS LITERATURE ART MEETS LITERATURE ART MEETS LITERATURE ART MEETS LITERATURE AN UNDYING LOVE AFFAIR AN UNDYING LOVE AFFAIR AN UNDYING LOVE AFFAIR AN UNDYING LOVE AFFAIR ART MEETS LITERATURE ART MEETS LITERATURE ART MEETS LITERATURE ART MEETS LITERATURE AN UNDYING LOVE AFFAIR AN UNDYING LOVE AFFAIR AN UNDYING LOVE AFFAIR AN UNDYING LOVE AFFAIR This limited-edition publication, created exclusively for the program Art Meets Literature: An Undying Love Affair, features a selection of nine works of art from the collections of the Virginia Museum of Fine Arts, chosen by the nine museum curators. Each art selection is accompanied by an original poem, written by one of nine award-winning poets. The program Art Meets Literature: An Undying Love Affair was developed to explore the relationship between poetry and the visual arts. The Library of Virginia and the Virginia Museum of Fine Arts are thrilled to welcome the Smithsonian Institution’s ever-popular presenter Dr. Aneta Georgievska-Shine for a magical evening uncovering the “undying love affair” between poetry and master works of art. Art Meets Literature is an event of the Virginia Literary Festival. Anchored by the elegant Library of Virginia Literary Awards Celebration and the popular James River Writers Conference, the Virginia Literary Festival celebrates Virginia’s rich literary resources with a weeklong series of events.