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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