Overnight Libor shot up today as a tumultuous morning dented confidence in the interbank lending markets.
Instability in the interbank lending markets continued today, despite the approval of the revised $700 billion bailout legislation by the US Senate.
The interbank lending markets remained unstable today, after the US Senate agreed to vote on an amended version of the rescue package.
Pressure on the interbank lending markets intensified today, after Congress rejected the US government’s bailout plan.
After a turbulent week, pressure on the interbank lending markets eased today as further injections of liquidity were announced and talks on the US financial rescue package resumed.
Strain on the interbank lending markets is easing as large infusions of liquidity start to take effect and market confidence improves.
Interbank lending markets remained under stress today, despite large injections of liquidity by the world’s central banks.
The risk management industry's increasing use of sophisticated models and technology – when coupled with poor modelling choices – can cause problems. Stephen Blyth calls for a return to to judgement and reasoning, and a halt to proceduralism.