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

3 comments Written on September 11th, 2008 by
Categories: Commentary
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?

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This entry was posted on Thursday, September 11th, 2008 at 2:28 PM and is filed under Commentary. You can subscribe to any comments to this entry via RSS 2.0. You can leave a response, or trackback from your own site.

About the Author: Deepak Shenoy
http://www.capitalmind.in
The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company in Gurgaon. He also provides data research and consulting services in the financial markets space. Connect with him at deepakshenoy@gmail.com.

3 comments “LEH down 40%, WM down 20%, Life is Not Good”

>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

Siddharth
09.11.08 at 4:31 PM
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>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

abhishek
09.12.08 at 5:14 AM
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>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

Anonymous
09.12.08 at 10:27 AM
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