Libor

October 3rd, 2008 7:05 am | by John Jansen |

Three month Libor set at its highest level since January at 4.33 percent. Below is a Bloomberg story on the topic.

By Lukanyo Mnyanda
     Oct. 3 (Bloomberg) — The cost of borrowing in dollars for
three months in London rose to the highest level since January,
the British Bankers’ Association said.
     The London interbank offered rate, or Libor, that banks
charge each other for such loans climbed 12 basis points to 4.33
percent, BBA data showed today. Overnight dollar loans fell below
the Federal Reserve‘s target rate for the first time since Sept.
14, 2007. It dropped 68 basis points to 1.996 percent.
     Credit markets have seized up as banks balk at lending to
each other for longer than a day amid concern that more of their
peers will fail. Governments in Europe and the U.S. have rescued
six banks in the past week. The Libor-OIS spread, a gauge of cash
scarcity among banks, jumped 14 basis points today to 284 basis
points
.

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