Major banks contribute to erratic Libor: Wall Street Journal

LONDON (MarketWatch) — Citigroup , WestLB, HBOS JP Morgan Chase & Co. , and UBS
, have reported significantly lower borrowing costs for the London interbank
offered rate, or Libor, than what another market measure suggests they should be,
The Wall Street Journal reported Thursday. That’s led to Libor acting as if the
banking system was in better shape than it actually was at important points in
the financial crisis, the report said. Since January, Libor has diverged from the
default-insurance market, another window into banks’ financial health, the
newspaper said. Analysts offer numerous reasons some banks might report lower
Libor rates than the market indicates, the report said.

Did you like this? If so, please bookmark it, about it, and subscribe to the blog RSS feed.

Possibly Related Posts:

• Foreclosures will continue because the values of homes will continue to go down for some time.
• The markets are going down because we are technically broken NOW
• Citi Blank sees Fed cutting funds rate to -2% by end-April 2009; J.P. Morgan sees Fed cutting funds rate to 0% by end-January
• My forecast for the next 6 bailouts–Things for bulls to consider
• Where will they stop? Will they ever stop?

Did you like this? If so, please bookmark it, about it, and subscribe to the blog RSS feed.

Technorati Tags: Banking System, Banks, Citigroup, Default Insurance, Financial Crisis, Financial Health, Hbos, Insurance Market, Jp Morgan, Jp Morgan Chase, Jp Morgan Chase Co, Libor Rates, London Interbank Offered Rate, Market Measure, Marketwatch, Shape, Ubs, Wall Street, Wall Street Journal, Westlb