Quote:
Originally Posted by SCORE-Cash
3-month Libor plus 8.5%, which totals 11.31% at today's rates... Not bad. Looks like the Fed will make a good profit on 85 billion.
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And yet another problem. So many ARMs based on Libor.
"The London interbank offered rate, or Libor, that financial institutions charge each other for loans soared 3.33 percentage points to 6.44 percent today, according to the British Bankers' Association. The increase was the biggest in its history. The rate was as low as 2.07 percent in June. "