what is the mean that ICICI had the big exposure to credit derivative.... and one thing more i tried hard but could never understand is what is mean of securitisation of the loan and makeing the fianancial security and selling to the investors.. what is mean of this.. i am not a individual having comerce stream but i want to hav knowledge... when i ask someone he tell me answer using the economic terms but plz tell me simplay what exactly it means... when some one securitise the loan what he do... what is the mean of security... plz help me... i am very desperate...
As being discussed a lot about subprime crisis & its impact on Indian stocks esp the banks, it is clear that Bank of baroda had the least exposure to it. Despite this, its share tanked down a lot. Can any body tell the reason, and more it could fall.
the issue of sub prime is not under current and every body is giving its views but i can just project when ever the tempest comes we will always project more and more negative sentiments all the banks including citi bank and many more banks are earing from last 5 years if one year they show some losses due to credit prob hope soon will come like phenolic and we see see again upward movements in market
I am really satisfied with reading this article, as we are in USA and all TV shows related to news and finance just have discussions on whats going on,but no one explians the ACTUAL REALITY AND HOW IT HAPPENED, AND WHAT IS NEEDED TO COME OUT OF IT. Hatsoff to you.
I am wondering, is this Business Standard provided the data of losses? Because, the losses for both Citi Bank and UBS are much more than what it shows here.
Go to Bloomberg or Financial Times, Newyork..it shows till now Citi bank (world's largest bank by value) has written off more than $25 Billion where as UBS (Europe's largest bank by asset) shown $19 billion includes their $3.2 billion losses in Q4 result. And for Societe Genarale,2nd biggest bank in France (after BNP Paribas)occuered more than $3.4 billion dollar losses apart from that their internal traiding default by an employer caused extra $7.2 billion losses, and now bank is in serious trouble in cash shortage. Where as HSBC (Europe's largest bank by market value, and world's 3rd after Citi and Bank of America (BOA)) occured $3.4 billion losses slightly more than what it shows as I am an employee of HSBC, Singapore believe this is not the final writen off for all the leading bank as recently UBS got a set back by Central bank of India,RBI not to allow them to enter into investing money on Indian small scale industries because of a case has been filed against UBS and Morgan Stanley on hiding the information to their investors caused 30 to 40% share prices down for these giant investment banks in the stock exchanges in past 6-8 months. And IMF (International Monetary Fund) is looking into both the issues.
Let's hope the sub prime crisis will resolve very soon which is not likely to be.
City bank appoints thugs to chase a poor Indian who default on cridit card payment. I am wondering whom are they employing in US to chase Americans since they lost $18 billion.
RE:Citi Bank
by anand gupta on Mar 06, 2008 09:52 AM Permalink
Bcos Indians are poor-indians,who always try to copy english men .We feel proud when we speak english , We show unity only in destructive things when tamed by our shrewed politicians. Situation will change when we will become a developed counrty after 50 years.
RE:Citi Bank
by sach k on Feb 10, 2008 05:24 PM Permalink
good one raj, I was harrassed by citi bank for no fault of mine and I have lodged a case in court. Good to see citibank in this position ha ha..
This one is a nice article specially to ones like me who do not understand Economics too much (or arnt associated with it). I think i have a fair idea of whats going on.
A whole lot of expatriates have lost the money due to fall in exchange rates, courtesy US slow down. This is causing a problem for many Indians working overseas
RE:recovery
by sibby mathews on Feb 10, 2008 05:20 PM Permalink
Because such collateral is almost always the mortgaged home. And demand for homes in the US has collapsed leaving the sector in a big crisis. In other words, the collateral has become a dud asset for many of these institutions.
An interesting aside is that the NRI community, among the most credit worthy sections in the U.S, is also very badly affected by this crisis. This is because the outlook towards a house that this section has is different from that of the native American. Whereas the American sees the house has just another utility, much of the NRI community sees it as another 'investment'. This is a cultural trait and it has just left the NRIs in America with red faces and plunging 'net worth'.
RE:recovery
by Pradyumn Sharma on Feb 10, 2008 04:55 PM Permalink
They can. But the value of the properties has fallen below the outstanding loan amount, so even by taking over the property and selling it in the marketing, the lenders make a loss. In fact, the loss amount reported is after factoring for the recovering they are able to make by taking over the property and considering the saleable value of the same.
