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The News Miscellaneous Libor Drops as Bank of America Adds to Recovery Signs
The News Miscellaneous Libor Drops as Bank of America Adds to Recovery Signs
| Libor Drops as Bank of America Adds to Recovery Signs |
| News - Miscellaneous |
| Written by By Lukanyo Mnyanda, Bloomberg |
| Wednesday, 20 May 2009 15:44 |
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May 20 (Bloomberg) -- The cost of borrowing in dollars between banks for three months dropped for a 36th day amid signs the recovery in the banking industry is quickening.
The London interbank offered rate, or Libor, for such loans decreased three basis points to 0.72 percent, bringing its drop the past four days to almost 14 basis points, the British Bankers’ Association said. The rate was 1.43 percent at the end of 2008. Libor is used to set borrowing costs on about $360 trillion of financial products globally, according to the BBA. Bank of America Corp., the biggest U.S. bank by assets, raised about $13.5 billion in a sale of common stock, seizing on a 40 percent jump in its shares in the past month to increase capital. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said yesterday the lender aims to be able to repay U.S. aid and exit the Troubled Asset Relief Program “in the next few weeks.” |