Joint Statement on Completing the LIBOR Transition

Yep. All the fat cat mucky mucks that used the "old" system to cheat and steal will sadly have to say their final "Goodbye" to those good ole days of corruption and fraud and.......oh!, their simply marvelous "profits"!

Care to explain the difference between libor and SOFR here or in pm?
As i see it the old system was more secure as it was unlikely to cause an spike in overnight finance rate.
Now that it’s market base, any major event could cause a spike in overnight rate, and the only security/collateral offered is american treasury bonds.
Thus all countries tied to the new system is 100% dependent on the well being of USA and it avoidimg bankruptcy/defaulting on it’s own obligations.
An spike could also cause a chain reaction for algorhitms from the banks going into selfprotective mode trying to cut losses short on leveraged instruments.
I don’t see how a panel of supposedly ”corrupt” people could cause anything similiar when deciding the rates, now it is up to the market?
Tell me if i understood the new system wrong or if there are some other mechanisms at play.