Also the FT reports this morning that the European Central Bank’s emergency lending fund, which attracts a penal interest rate, was tapped yesterday for €3.9bn – the largest sum asked for since October 2004.
The surge in demand for the ECB’s “marginal lending facility” pointed to the difficulties still being faced by European banks as a result of the global credit squeeze. The ECB revealed no details but it is likely that more than one borrower was involved. Use of the marginal lending facility attracts a 5 per cent interest rate – significantly higher than market rates.
Oh, Jean Claude, Jean Claude, wherefore art thou, my beloved?
Incidentally, the BBA link to the libor data is here.