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Sept. 16 (Bloomberg) -- The cost of borrowing in dollars overnight more than doubled as banks hoarded cash amid speculation more financial institutions will fail.
The overnight dollar rate soared 333 basis points to 6.44 percent today, its biggest jump, according to the British Bankers' Association. Rates climbed yesterday after Lehman Brothers Holdings Inc. succumbed to mounting credit-market losses and filed for bankruptcy.
``The issue going forward is not Freddie, Fannie or Lehman, it's who's next,'' said Padhraic Garvey, head of investment-grade strategy in Amsterdam at ING Bank NV. ``It's all a mess out there, it's unbelievable.



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