FILE PHOTO: Secretary of the Treasury Steven Mnuchin answers questions from the press after an interview on CNBC on the North Lawn of the White House in Washington, U.S., September 12, 2019. REUTERS/Sarah Silbiger.
WASHINGTON (Reuters) – The U.S. Treasury Department and Internal Revenue Service proposed guidance on Tuesday to help taxpayers avoid “negative consequences” as U.S. banks switch from the tainted London Interbank Offered Rate (Libor) to other benchmarks.
Host - Debt - Derivatives - Contracts - Libor
A host of debt, derivatives and other financial contracts are shifting away from Libor after widespread attempts by banks to rig the 50-year-old benchmark across several currencies prompted regulators to call for an end to using it by the end of 2021.
The shift could have tax implications that affect financial contracts worth more than $300 trillion globally, from complex derivatives to home loans and credit cards.
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