Wow, whoever guessed that could happen after one little Wall Street Journal study? Funny how once everyone notices the emperor has no clothes, he somehow instantly gets himself a membership to Laura Ashley. Here, a closer look at the biggest Libor move in more than two weeks.

The benchmark London interbank offered rate, or Libor, rose Thursday in a move some analysts attributed to new concerns about the rate's accuracy.

Three-month dollar Libor, which is supposed to reflect the rate at which banks lend to one another, rose 0.03 percentage point to 2.68%, its largest increase in more than two weeks. The move came after the publication of a Wall Street Journal study suggesting banks may have reported flawed borrowing rates used to set Libor.

In response to concerns that some banks may have understated their borrowing costs, the British Bankers' Association, which oversees Libor, has been conducting a review of the rate system. An initial report is expected Friday.

One of the world's most important financial indicators, Libor forms the foundation for payments on trillions of dollars in mortgage loans, corporate debt and other financial contracts. The Journal's study analyzed Libor by comparing banks' reported borrowing rates with estimated borrowing rates derived from the market for default insurance -- another indicator of banks' financial health. The analysis suggested that many banks' reported rates -- and dollar Libor itself -- were significantly lower than what the default-insurance market suggested they should be.

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