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
posted by Whispering Walls at 10:59 am
7 Comments:
Ah, so not Citi then
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.
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
It's pretty bad. I expect the US will cut rates today but it's unlikely to restore much confidence.
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.
I don't understand financial stuff, WW - but it scares me!
Yes, the future does not look good. I hope you will keep us enlightened.
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