{"id":577638,"date":"2010-05-25T03:58:45","date_gmt":"2010-05-25T07:58:45","guid":{"rendered":"http:\/\/www.businessinsider.com\/european-financial-system-confidence-2010-5"},"modified":"2010-05-25T03:58:45","modified_gmt":"2010-05-25T07:58:45","slug":"this-chart-shows-how-markets-are-losing-faith-in-europes-financial-system","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/577638","title":{"rendered":"This Chart Shows How Markets Are Losing Faith In Europe&#8217;s Financial System"},"content":{"rendered":"<p><img decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/image\/4bfb801c7f8b9a4813df0200-400-\/chart.png\" border=\"0\" alt=\"Chart\" width=\"400\" \/><\/p>\n<p>The London Interbank Offered Rate (LIBOR), which is a benchmark rate at which banks borrow money from each other, has been rising.<\/p>\n<p><a href=\"http:\/\/online.wsj.com\/article\/SB10001424052748704792104575264883867618368.html?mod=WSJ_business_whatsNews\">WSJ:<\/a><\/p>\n<p style=\"padding-left: 30px;\">While the current Libor, at just above 0.5%, is far below the sky-high levels of 4.81875% reached at the height of the financial crisis in 2008, it is still a significant jump from 0.25% as recently as March.<\/p>\n<p>Yet as shown in the Wall Street Journal graphic to the right, 3-month LIBOR, which is a measure of trust in banks, is higher for European banks vs. U.S. ones, thus showing less trust.<\/p>\n<p style=\"padding-left: 30px;\">On Monday, German state-controlled lender WestLB AG said it cost 0.565% to borrow dollars for three months, up from 0.38% a month earlier. U.S. banks are reporting lower costs: Bank of America Corp., said its three-month dollar Libor stood at 0.48%. J.P. Morgan Chase &amp; Co. reported a 0.47% rate.<\/p>\n<p>Higher borrowing costs cut into profits, and could add further strain to troubled European banks, pushing more over the edge.<\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/european-financial-system-confidence-2010-5#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/VTps6rCyIo4\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The London Interbank Offered Rate (LIBOR), which is a benchmark rate at which banks borrow money from each other, has been rising. WSJ: While the current Libor, at just above 0.5%, is far below the sky-high levels of 4.81875% reached at the height of the financial crisis in 2008, it is still a significant jump [&hellip;]<\/p>\n","protected":false},"author":6205,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-577638","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/577638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/6205"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=577638"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/577638\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=577638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=577638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=577638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}