Worries of gamed Libor rate may raise money-market rates

04/17/2008 | Bloomberg

Money-market rates that began surging last year as the U.S. housing slump worsened may jump again on concerns British banks may be deliberately understating their borrowing costs. The British Bankers' Association threatened to ban members that give misleading quotes to rig the daily Libor average of rates at which the banks lend to each other. The Bank for International Settlements said in March some lenders may be manipulating the Libor fixing process to prevent their borrowing costs from rising.

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