Libor ignored the crisis in Cyprus that's roiling financial markets, showing the global benchmark for $300 trillion of securities remains divorced from reality six months after regulators laid out a plan to fix it.
Just four of the 18 banks contributing to the London interbank offered rate in U.S. dollars increased submissions last week to show a rise in their estimated borrowing cost, as concern grew about bank runs and bailouts in Europe. UBS AG and BNP Paribas SA were among those reporting no change.
That week, the average cost to insure banks against default soared 12 percent, credit-default swaps show. The amount lenders paid to borrow cash from each other overnight, as measured by the overnight-indexed swap rate, rose more than 8 percent.
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