www.infystocks.co.uk: The exhibition of BNP at Lehman is "manageable"

15 September 2008

The exhibition of BNP at Lehman is "manageable"

The U.S. investment bank has officially been placed in bankruptcy and explains wish to "protect its assets and maximize its value."
Lehman Brothers bankrupt. The spokesman of the bankruptcy court in New York announced Monday, September 15, the U.S. investment bank had officially placed under the protection of Chapter 11 bankruptcy. Earlier in the day, she announced to be the intent "to protect its assets and maximize its value," and because he has not found a buyer.
The bank said that its customers can continue to negotiate their shares or to take any decision which they seem necessary on their accounts. " As announced last Wednesday it remains "in advanced discussions with a number of potential buyers" to sell its asset management business, wealth management and investment.
One of its leaders in France has explained that Lehman was not a "liquidation": "we are under protection and we have more time to complete, in all serenity, restructuring necessary" he said, adding that it was "totally excluded" the bank so that this state of bankruptcy.

Surveillance close

In the meantime, the bank began to be placed under surveillance even closer, as reflected for example cuts note made by Fitch and Moody's. Constable German markets, Bafin, has frozen the assets of Lehman in Germany for "to safety". A similar operation was conducted in Japan, while the British subsidiary of the bank was placed under receivership. The financial authorities of Japan have ordered the local branch of Lehman Brothers to suspend its activities until 26 September.
Banks have also begun to quantify their "relations" with Lehman. Dexia has evaluated its total exposure to the activity of Lehman to 2.28 billion euros, including 500 million for the party direct and unsecured. The Belgian KBC is valued at 280 million euros at most. BNP Paribas has it indicated that its exposure was "manageable", without quantifying. As for UniCredit, she assured that her exhibition is "very limited", while acknowledging it is "too early today for any specific assessment whatsoever."
The Swedish SEB, however, amounted to 64 million exposure to a risk of failure of the U.S. investment bank. Ditto for its rival Handelsbanken.
Fortis has finally proved to be directly exposed to the tune of 137 million euros in bonds and 270 million in transactions "repo". Its indirect exposure amounted to 117 million.
The pension fund of Norway, one of the biggest sovereign funds in the world, has indicated to his side he has lost at least 500 million kroner (61 million euros) in the bankruptcy.

In free fall for several weeks

Lehman Brothers was in free fall for several weeks with a loss of $ 3.9 billion in the third quarter and an action whose value was divided by 16 in one year.
Amid this morass, it did not even have a chance to find a "white knight", as Bank of America has preferred to buy Merrill Lynch and Barclays as the British withdrew, arguing that a resumption of Lehman was impossible without assistance from the U.S. State comparable to that granted in March to JPMorgan Chase in its acquisition of another bank in difficulty, Bear Stearns.
The total debts of Lehman Brothers amounted to 613 billion at May 31. The total assets amounted to about to 639 billion dollars. The debt payable by the first 30 creditors of the bank reached 158 billion at July 2.

www.infystocks.co.uk

The exhibition of BNP at Lehman is "manageable"

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