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Lehman Brothers

$ 3,000 million and U.S. $ 4,000 million. Within two weeks (specifically on 16 June), Lehman Brothers present its quarterly results that would have a red. That is why we would like to take this opportunity to announce the expansion of its capital. Do you remember the monolines? These entities, among which are to Ambac, MBIA and FGIC to specializing in supporting debt, threatened to generate a jolt as or greater than that generated by the subprime following a downgrade in its credit rating. Is that these entities supported the famous CDOs … But not only supported these papers, but also supported bonds issued by municipal governments. On Wednesday, Moody’s threatened to downgrade the credit ratings of these entities even at two levels.

This would be very hard for the U.S. economy. But problems persist not only in the U.S. … In Europe also achieved. On Wednesday the French bank Credit Agricole said it would launch a capital increase of 5,900 million on 6 June, as a result of the impact of the crisis caused by subprime mortgages (subprime) in the U.S..

A little less than a month, HSBC reported a loss in its book value of $ 3,200, during the first quarter of the year and uncertainty over the coming months is reflected in the following statement from its chairman, Stephen Green: “The outlook for the rest of the year are unusually difficult to anticipate in the current situation.” For now, the fears surrounding financial institutions both in the U.S. as in Europe and Asia, the roles remain the same downhill. And with the values of financial institutions across the floor, the good business opportunities multiply. Although care must be taken in knowing how to identify those entities whose value is significantly below its real value, those which despite having fallen significantly in value, worth even more than the quality of its assets warrant. For now, mergers and acquisitions continue. Oil countries, with their pockets overflowing dollars are waiting to see what new business opportunities present international financial system. In case, the sovereign fund created by the government of Kuwait, Kuwait Investment Authority (KIA) is considering new investments in the U.S. financial sector and is targeting at Citigroup and Merrill Lynch, which aims to increase participation. KIA also worth remembering that participated in the initial public offering of Visa Corp., investing $ 800 million. To give an idea of the magnitude of the Kuwaiti Fund at 31 March this year, had assets of U.S. $ 213,000 million. In Europe, it seems that Deutsche Bank wants to go shopping. The entity was interested in buying German rivals. This is without doubt a further sign that banks in Germany are preparing a stage of major mergers and acquisitions. The chief executive of Deutsche Bank, Josef Ackermann had said at the annual shareholders meeting: “If indeed there is a consolidation of German banks, we will not marginalized.” For sale are Deutsche Postbank and a subsidiary of Citigroup. Other entities affected by the crisis, can follow this path are WestLB and IKB bank and the names … continue. The outlook on the global financial system is a bit lighter than a few months ago. But the clouds persist … How is amended financial map in the major economies of the world for this wave of mergers and acquisitions is starting?

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