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Commentary

LEH down 40%, WM down 20%, Life is Not Good

Lehman Brothers is down 40% today, and was down yesterday too. Washington Mutual is a big bank and looks like it’s got some serious problems, being down 20%.

Will there be a rescue effort? Time will tell. But I think this is a little too much to swallow.

Lehman owns a number of funds that trade or invest in the Indian markets. What happens?

  • Siddharth says:

    >excerpt from Bloomberg news
    "The central bank “will not and cannot solve the shortage of funding to finance bank lending, including mortgage lending'' over the long term, Governor King told lawmakers in London today. “Only private savers or taxpayers via the government can provide such funds.''"
    http://www.bloomberg.com/apps/news?pid=20601068&sid=aKC8IAmwSYLY&refer=economy

    Clearly Governer of BOE has taken a stand which publicly goes against the govt in seat's favour. He says he is saying what central bank can and cant do. and the only ST liquidity solutions central bank gives is for temporary shock financial institutions get.

    and very special quote "“Only private savers or taxpayers via the government can provide such funds.''"
    So politicians are doing more damage to common citizen by trying to save the day (or buy their time in the power??). Hope RBI doesnt have to follow the same strategy like FED or BOE, so as for Bear Sterns and Northern Rock respectively.
    cheers

  • abhishek says:

    >Hi Deepak,

    I have one off the context question? Is there any link through which I can find investment in indian companies done by Lehman Brother (or FII). I feel Lehman would off load stake either if it goes bankrupt or sold out or taken over by US government. So Just want to see . FYI I have check linked at SEBI but it doesnt help

  • Anonymous says:

    >Exit from these counters ——LEHMAN BROS HOLDING AS ON 30TH JUNE 2008

    Anant Raj Inds. Ltd. 1.82 5362500
    Champagne Indage Ltd. 1.55 236574
    Consolidated Construction Consortium Ltd. 1.36 503000
    Development Credit Bank Ltd. 3.04 5301900
    Edelweiss Capital Ltd. 1.8 1350000
    1.8 1350000
    Emkay Global Financial Services Ltd. 4.05 982134
    Godawari Power & Ispat Ltd. 1.47 413832
    Golden Tobacco Ltd. 1.7 300000
    I O L Netcom Ltd. 1.46 400000
    I V R C L Infrastructures & Projects Ltd. 1.2 1600000
    K P I T Cummins Infosystems Ltd. 1.11 862823
    Opto Circuits (India) Ltd. 0.64 600000
    Orbit Corporation Ltd. 4.82 1750000
    Pioneer Embroideries Ltd. 3.23 394356
    Prajay Engineers Syndicate Ltd. 1.15 457701
    Prithvi Information Solutions Ltd. 2.63 476160