An analysis by the Wall Street Journal of the dailyrate estimates submitted by banks that are used to calculate Liborshows the daily submissions are often slow to change and somebanks' quotes don't correlate that well with their credit-defaultswaps, both indications the rate may not be working as it issupposed to.

According to the Journal, this year through August, the18 banks that submit estimated rates for U.S. dollar Libor lefttheir rates unchanged 87% of the time on average. The number ofchanges varies widely from bank to bank, according to theJournal; Société Générale changed its quote forthree-month Libor just four times during the first eight months ofthe year, while Credit Swiss changed its quote 59 times.

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