In its latest monthly commentary, Wells Fargo Advantage Money Market Funds comments on LIBOR. The piece, by Dave Sylvester, says, "After one large British bank admitted falsifying the interest rates it submitted for the daily calculation of the London Interbank Offered Rate (LIBOR) and investigations into the submissions by a number of other LIBOR-panel banks have been announced, there are renewed concerns regarding the integrity of the rate and its appropriateness as a benchmark interest rate.... In our view, all survey-based measures are flawed to some degree, and in the case of LIBOR we see a problem that stems directly from the question being asked -- the question is basically unanswerable.... So even without the question of outright manipulation, it should come as no surprise that a rate based on an unanswerable question, about theoretical rates in an illiquid market, set before the market opens, and which has the potential to call the creditworthiness of the submitting bank into question, might have some credibility issues."

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