UK Banks lying about inter-bank lending rates?

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Looks like Libor is a bit lower than it should be:

http://online.wsj.com/article/SB120831164167818299.html?mod=hpp_us_pageone

The concern: Some banks don't want to report the high rates they're paying for short-term loans because they don't want to tip off the market that they're desperate for cash. The Libor system depends on banks to tell the truth about their borrowing rates. Fibbing by banks could mean that millions of borrowers around the world are paying artificially low rates on their loans. That's good for borrowers, but could be very bad for the banks and other financial institutions that lend to them.

Generali

LIBOR is a strange thing anway. It's measured by taking the middle 3/5ths of unsecured interbank lending rates (stripping out the highest and lowest rates paid).

Clearly when banks are very wary about lending to each other unsecured, using an unsecured lending rate is likely to give an odd result.