There were no actual bank failures of note overnight, but still plenty of stress over the ongoing contagion from the second phase of the credit crunch.Interbank lending rates skyrocketed. Drawing from Bloomberg's report, US dollar Libor climbed 431 basis points to an all-time high of 6.88 per cent, the British Bankers' Association said. The euro interbank offered rate, or Euribor, for one-month loans jumped to a record 5.05 per cent.A second theme overnight is the prospect that the shotgun merger of Lloyds TSB and HBOS in Britain may be shaky, or at least recast to make it even more favourable to Lloyds. Shares in HBOS fell heavily and shares in Lloyds gained, on talk the two banks may renegotiate the terms of the share swap. HBOS shares are now trading at a discount of one third to the effective offer price from Lloyds (which is all scrip).This appears to be stirring up expectations at some Australian major banks that an opportunity may emerge soon to negotiate a takeover of Bank of Western Australia, the main HBOS subsidiary in Australia. The Herald Sun reported views of unnamed bank executives along these lines today.Finally, the major bank rescue of the last 24 hours was that of Dexia, the second Belgian lender to receive an infusion of capital from its government this week.The Belgian government led a €6.4 billion capital injection. The French government, through the French state-controlled Caisse des Depots, contributed about a third of this amount. Luxembourg's government also chipped in to buy preference shares.Dexia owns US monoline insurer Financial Security Assurance, which, like many of its peers, is reporting significant losses.