Cyprus Immunity Shows Libor Still Broken Rate: U.K. Credit

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.