LIBOR spread widens, signals more financial pain
Bob Morris @ Aug 25th 2008 12:15 - Category: Credit crisis
The LIBOR, the interest rate that large financial institutions charge each other for short-term loans, is widening over the treasury rate. This indicates severe stress in the system and that more pain is coming.
“The suspicion is that banks are still hiding losses. The banking system relies on trust and at the minute there quite simply isn’t any” said a money manager.
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