by Calculated Risk on 11/19/2007 10:58:00 PM

UPDATE: WaPo leads with a similar headline: Fallout From Credit Crunch Creates Another One

From the Telegraph: Libor soars as credit crunch returns (ha tip Viv)

The credit crunch is returning in a virulent form ... after City banks raised their wholesale lending rates to the highest level in two months.

Morgan Stanley said that the recent jump in the benchmark London Interbank Offered Rate, which yesterday rose to just under 6.45pc, was ... a major warning sign of pain ahead ... it was Libor's increase in August that signalled the initial impact of the credit crunch.

The UK is still struggling with the Northern Rock situation, but this is not a good sign.