 Although LIBOR had lost the confidence of market participants after the investigation, it was unclear whether there was a rate that could replace it.Oliver Wyman urged caution during the transition period, pointing out that “[s]ince the proposed alternative rates are calculated differently, payments under contracts referencing the new rates will differ from those referencing LIBOR.The transition will change firms’ market risk profiles, requiring changes to risk models, valuation tools, product design and hedging strategies.” The report projected that banks would need to spend an astonishing $1.2 billion to transition away from LIBOR.