Doubts about accuracy of Libor resurface

09/24/2008 | Wall Street Journal, The

For the second time in 2008, accuracy of Libor came into question as doubts arise about whether financial institutions are understating borrowing costs. On Monday, the rate for the 28-day Federal Reserve term-auction facility was 3.75%. The facility requires banks to put up collateral, so its rate should be lower than Libor. The one-month dollar Libor was 3.19% on Monday and 3.21% on Tuesday.

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Wall Street Journal, The

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