Here are the choice highlights from the Fed datadump as we see them.
From Barclays to NYFed:
"Libor's going to come in at.. .. three-month libor is going to come in at 3.53.
...it's a touch lower than yesterday's but please don't believe it. It's absolute
rubbish. I, I, I'm, putting my libor at 4%
...I think the problem is that the market so desperately wants libors down it's actually putting wrong rates in."
and on the 'Stigma':
"I think people are afraid to be seen as urn being ahh having, I mean if they have a high libor the market automatically assumes they're paying too much, but in a perverse kind of way if you put a low libor, it's almost as if the market knows that you're scared to put where you really think it is. I mean, I know that I'm consistently high, but I think I'm consistently correct."
and just how bad:
"when libor was fixing at 3.55... just to give you a clue I got paid 4.30 in threes by my Tokyo, via the yen"
and specific to Barclays:
"I don't know if you've looked at my libors but I've kept mine the same virtually every day for the last week and everyone seems to be gradually sort of coming up to my levels, and I can tell you that I'm putting levels in that I' m not sure I can trade or not, but I know they're more realistic than anyone else's."
From June 2008, the Fed appears to have been aware of Libor "misreporting" issues:
[5]
Apparently Libor has credibility issues:
[6]
The BBA was made fully aware of the issues:
[7]
And here are all the banks that were complicit: basically, all the BBA members:
[8]
Timmy Gee to M-King:
[9]
And M-King's response:
[10]