Diamond’s Exit Shows Libor Only What Each Bank Says It Is

The resignation of Barclays Plc Chief Executive Officer Robert Diamond for the firm’s role in rigging the London interbank offered rate underscores the disconnect between the market’s perception of bank borrowing costs and the benchmark for $360 trillion of global securities.

Barclays has gone from saying in January it can borrow for three months at interest rates that were on average above other banks to saying it can borrow more cheaply than its peers even though the cost of insuring the London-based firm’s debt using credit-default swaps rose 36 percent, according to data compiled by Bloomberg.