Monday, September 15, 2008

Lehman contagion

Not a great day to come back to the office with markets tumbling. At least the Hong Kong market is shut today which numbs some of the pain. The list of unsecured creditors to Lehmans gives some idea of the global impact of its bankruptcy on the banking sector. The largest unsecured creditors are bond holders at $155bn. Then follow:
Japanese banks $1.8bn
European banks $665m (BNP, KBC, Lloyds & Standard Chartered)
Bank of Nova Scotia $93m
Australian banks $91m
Taiwanese banks $84m
Bank of China $50m


Blogger kinglear said...

Ah, so not Citi then

3:29 pm  
Blogger Winchester whisperer said...

Yes sorry about that, KL. Citibank and Bank of New York are simply the nominee names for the bond holders who are as yet unnamed.

4:09 pm  
Blogger kinglear said...

Hm can't help but feel Fed is holding its cash for AIG - if that goes then we really are all in the you know what. Seem to remember posting about how bad it was some time ago - but I didn't actually think it was this bad

5:03 pm  
Blogger Winchester whisperer said...

It's pretty bad. I expect the US will cut rates today but it's unlikely to restore much confidence.

7:27 am  
Blogger kinglear said...

ah well, off to Romania to live in the last century on subsistence farming. BTW I expect you know the banks are saying -ah you have collateral of £1m and we have lent you £700,000. Well we think that £1m is only worth at best £750k so we will lend you 70% of that ie £500k. And when you say wait a minute, 70% of £750k is £525,000 they say, Ah, well that includes the fees of course.

8:52 am  
Blogger Welshcakes Limoncello said...

I don't understand financial stuff, WW - but it scares me!

9:55 pm  
Blogger Ellee Seymour said...

Yes, the future does not look good. I hope you will keep us enlightened.

12:37 pm  

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