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U.S. Fed seeks comments on Libor alternatives

Aug 24 (Reuters) - The U.S. Federal Reserve said on Thursday it requested public comments on a plan for the New York Federal Reserve and the Office of Financial Research to come up with three reference rates based on U.S. Treasuries-backed repurchase agreements (repos).

These rates are intended as alternatives to the London interbank offered rate (Libor), which is a benchmark for $350 trillion worth of financial products worldwide including $150 trillion in derivatives.

On June 22, the Alternative Reference Rates Committee (ARRC), a group of large international banks, adopted a repo-based benchmark due to concerns that a decline in short-term bank lending since the 2007-2009 financial crisis undermined faith in Libor, and posed risks to the trillions of dollars of derivatives backed by the rate. (Reporting by Richard Leong and Karen Brettell; Editing by Chizu Nomiyama)