<p><span>The American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American banks and financial institutions, today announced that the exchange has appointed veteran financial services executive </span><span class="xn-person">John Shay</span><span> as CEO, effective immediately. AFX </span><a target=" blank" rel="nofollow" href="https://c212.net/c/link/?t=0&l=en&o=3853413-1&h=305331952&u=https%3A%2F%2Fwww.prnewswire.com%2Fnews-releases%2Famerican-financial-exchange-acquired-by-7ridge-301799803.html&a=recently+announced">recently announced</a><span> that 100% of the company was acquired by 7RIDGE, a specialized growth equity firm invested in transformative technologies for financial services.</span></p>
on
By John Hintze
In March 2021, the administrator of the London Interbank Offered Rate made it official: certain tenors of U.S. dollar Libor would cease to publish on Dec. 31, 2021, with remaining settings terminating on June 30, 2023, for legacy transactions. With the long-telegraphed Libor endgame now set in stone, banks are picking up the pace of transition amid front- and back-end challenges.
One concern held by community, midsize and regional banks that use Libor is that the Secured Overnight Financing Rate, the favored alternative of the Alternative Reference Rate Committee, a public-private group convened by the New York Fed, is that it does not reflect credit risk. In times of market stress, investors flocking to the risk-free rate would cause it to plummet, along with the banks’ returns on SOFR-priced loans, while their cost of funds jumps a bank nightmare.