As I’ve mentioned earlier, there are concerns that one of the crucial interest rate indices, the LIBOR, is not accurate because the member banks are not accurately reporting interest rates.

It now appears that the , “benchmark interest rate for at least $347 trillion of derivatives and 6 million U.S. mortgages” will be modified to address these concerns. (Yes, that “t” after the $347 is correct)

The British Bankers’ Association, which is responsible for reporting the rates, has, “report based on discussions with member banks to its independent Foreign Exchange and Money Market Committee.”

There are estimates that the reported rate could be as much as 30 basis points too low, or about 10%.