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LIBOR Credibility In Doubt

Posted on May 13, 2008

Bloomberg is reporting Libor Poised for Shake-Up as Credibility Is Doubted.The benchmark interest rate for $62 trillion of credit derivatives and mortgages for 6 million U.S. homeowners faces its biggest shakeup in a decade as lawmakers question if banks are understating borrowing costs.For the first time since 1998, the British Bankers' Association is considering changing the way it sets the London interbank offered rate, according to Chief Executive Officer Angela Knight, who appeared before a parliamentary committee in London today. We've put Libor under review,'' Knight said in an interv...

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currencies , economy , fed , fed funds , federal reserve , the fed