LIBOR Rate Apparently Rising In Response To BBA Investigation
From the Wall Street Journal this morning- this is worth watching:
A sharp and unexpected rise in a widely used interest rate is threatening to add billions of dollars to the interest bills of homeowners, companies and other borrowers around the world.
The London interbank offered rate jumped for the second straight day Friday — two days after the British Bankers’ Association, which oversees the calculation of the interest rate, said it was investigating the borrowing rates that banks had been providing to it.
The BBA started its review amid growing concerns among bankers that their rivals weren’t reporting their true high borrowing costs, for fear of signaling to the market they were desperate for cash. John Ewan, a manager of the Libor system at the BBA, said Friday the association continues to believe in the accuracy of the Libor system.
What’s the big deal […]
Original post by twist
