Safety nets by Goldman, Morgan

While the Indian stock markets became volatile, they have not crashed as might have been expected initially. They now seem to be stabilizing as safety nets are being created for collapsed banks, like converting Goldman Sachs and JP Morgan into commercial banks while other banks are picking up some entities cheap like the takeover of Wachovia by Wells Fargo.

As far as the US and even Europe are concerned, the ramifications appear to be unending as the scenario is unfolding into the biggest banking crisis in 100 years. Financial institutions considered to have a rock-like stability including Merrill Lynch, Morgan Stanley, JP Morgan and the Lehman Brothers collapsed within days of each.

Some were rescued through various manoeuvres and only Lehman actually declared bankruptcy. Reports reaching here also indicate that many smaller banks are declaring insolvency in the US - a development not being taken note of by the international media which is focusing on the big fish. Thus average people in the US are facing severe hardship. No wonder then the battle is being described as one of Main Street vs Wall Street.

v.krishnamoorthy...

Infy, Wipro, TCS at loss--how much

Ultimately, therefore, the big losers in the global financial crisis in this country are likely to be the iconic software firms like Infosys, Wipro and Tata Consultancy Services (TCS).

Much of their business comes from the erstwhile giant investment banks and that could affect their profitability in the short term.

In the medium-to-long term, however, these companies are likely to have greater resilience given their innovative approach in the past to hunting out new markets and customers.

The other area where worries still remain is the pullout of funds by foreign institutional investors from the country`s equities and debt markets.

The bourses have been showing considerable volatility ever since the news came in about the failure of Lehman and the domino-like effect on other investment banks.

v.krishnamoorthy...

NEW YORK: Bank of America Corp, the largest U.S. bank, reported weaker-than-expected quarterly earnings on Monday, slashed its dividend and said it would seek to raise $10 billion in additional capital.

Bank of America, which announced its earnings two weeks early, said third-quarter profit dropped to $1.18 billion, or 15 cents a share, from $3.70 billion, or 82 cents a share, a year ago.

Analysts looked for earnings per share of 60 cents, excluding one-time items, according to media Estimates.

Bank of America warned that credit quality continued to weaken during the quarter, and said the economy has moved to a "recessionary environment."
It is therefore essential to demand for more deposit insurance cover. We have cover upto one lac. It should be increased to atleast Rs.10 lacs.

v.krishnamoorhty


...

NEW YORK: Bank of America Corp, the largest U.S. bank, reported weaker-than-expected quarterly earnings on Monday, slashed its dividend and said it would seek to raise $10 billion in additional capital.

Bank of America, which announced its earnings two weeks early, said third-quarter profit dropped to $1.18 billion, or 15 cents a share, from $3.70 billion, or 82 cents a share, a year ago.

Analysts looked for earnings per share of 60 cents, excluding one-time items, according to media Estimates.

Bank of America warned that credit quality continued to weaken during the quarter, and said the economy has moved to a "recessionary environment."


v.krishnamoorthy...

WE have a status report of Bank of America. Are we to learn any lesson from the west?

NEW YORK: Bank of America Corp, the largest U.S. bank, reported weaker-than-expected quarterly earnings on Monday, slashed its dividend and said it would seek to raise $10 billion in additional capital.

Bank of America, which announced its earnings two weeks early, said third-quarter profit dropped to $1.18 billion, or 15 cents a share, from $3.70 billion, or 82 cents a share, a year ago.

Analysts looked for earnings per share of 60 cents, excluding one-time items, according to media Estimates.

Bank of America warned that credit quality continued to weaken during the quarter, and said the economy has moved to a "recessionary environment."


v.krishnamoorthy
...

Today bank of Amerika has reported its status . Is it a warning for the so called strong banks of our country?

NEW YORK: Bank of America Corp, the largest U.S. bank, reported weaker-than-expected quarterly earnings on Monday, slashed its dividend and said it would seek to raise $10 billion in additional capital.

Bank of America, which announced its earnings two weeks early, said third-quarter profit dropped to $1.18 billion, or 15 cents a share, from $3.70 billion, or 82 cents a share, a year ago.

Analysts looked for earnings per share of 60 cents, excluding one-time items, according to media Estimates.

Bank of America warned that credit quality continued to weaken during the quarter, and said the economy has moved to a "recessionary environment."


v.krishnamoorthy...

Did Bank of punjab, Lord krishna bank, Global trust bank etc said anything in advance to the depositors that they are being compelled to merge with some other bank? The collapse of the financial banks and NBFCs are as old as mankind. At the present rate of subsidies and Unaccountable money advanced to our MLAS and MPS for the "improvement of their constituency`, are taken into account, slowly all the PSU banks will become near bankrupt. I happened to hear this message as a `daylaight robbery` in an interview a wekly magazine had with a political leader. Till date the statement is not chalenged by the Govt. What does it mean.? astep towards declaring `morotorium`.
that is why I suggested to our friends to give letters to their bankers for enhancing the limit of insurance cover for deposits. Some are telling, `they are PSU banks and hence need not`. Then Why should they have a insuce. cover for one lac?
We are cheating ourself.
v.krishnamoorthy...

Indian Bank will post q2 PAT Rs300 crore and Annual PAt will be 1200crore....

Leave it, Leave alone PSU banks. The way Fin.Min./RBI are apparently protecting ICICI Bank as if it has majority govt. stake, is really shocking. Hope the Special Audit of ICICI Bank by the RBI is candid. The Govt. (Fin.Min.) should not interfere with any independent action (which again is doubtful, the way RBI is being packed with ex-Fin.Min. mandrins)by the regulator of banks i.e. RBI. Also, RBI should continue to assert, just like during the regime of Dr.YV Reddy, in its role as monetary authority and also in its role as regulator of scheduled banks. The big question mark is whether RBI will be able to assert its role? ...

You have a valid point and possibly you are also right. thanks....

Thanks for this great info....

I am too hearing disturbing news from my son in Germany. Thanks for yr views....

if i sell today 06/10/2008, then i eligibale to bonus shares ?...

A main correction please: Do not buy shares with out having tagets for selling. This will put a mark for your profit or loss. v.krishnamoorthy...