Lehman Brothers Bankrupcy - the Indian impact
Wednesday, September 17, 2008
Lehman Brothers, the world’s fourth-largest investment bank was a leading global
financial-services firm until this September 2008. On September 14th 2008 Lehman announced it would file for Chapter 11 bankruptcy protection.
On September 10, 2008, Lehman announced a loss of $3.9 billion and their intent to sell off a majority stake in their investment-management business and its stock price dropped another 40 percent on September 11, 2008. This happen to be a big blow
to the US markets, the Dow Jones closed down 500 points on September 15, the largest drop since the days following the attacks on September 11, 2001.In India the impact was multifold, on its own employees, on various projects which Lehman has been investing and the centiments of the markets.
Lehman currently employs about 2,500 people in India. The mood in their office at Ceejay House and back office at Hiranandani Gardens in Powai is very grim. employees have been asked to wait for 72 hours before a decision from the headquarters is communicated. But most have already made up their minds. Most of them qualify for firms such as PricewaterhouseCoopers, JP Morgan and Deloitte
The development has already lead to a loss of nearly Rs 2,000 crore for Indian companies in which Lehman had made equity investments. Even some reality developers feels the heat. ICICI Bank will lose around Rs.375 Crore as ICICI Bank UK Plc holds 57 million euro of senior bonds of Lehman Brothers Inc
The Indian markets experienced the ripple effects of the Lehman collapse, the mood is so bad that there are simply no genuine buyers in the markets. On 15th Sept The Bombay Stock Exchange (BSE) benchmark Sensex fell by 772.62 points and the Nifty of the National Stock Exchange also dipped below 4,000-mark by falling 242.40 points.
The ray of hope:As of 18th September 2008 there is news that Barclays has agreed to acquire Lehman Brothers' North American investment banking, and fixed income and equities sales, trading and research operations, including approximately 10,000 employees.
posted by Rishil Babu @ 7:47 PM,
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India needs to fight back terrorism
Sunday, September 14, 2008
25 human life ended, more than 140 people injured in a span of 25 mins. The bomb blast which ripped across the Delhi markets on a Saturday evening has impacted hundreds of families who lost their loved ones, families just like yours and mine. The blasts took place in some of the busiest market place of Delhi- Connaught Place, Gaffar Market and GK-II.
Helplessness is what many people in Delhi might have felt, a time when anger and emotions were on high. This is not what a great nation like India deserve. Two
months back, 25th July to be exact, it was Bangalore and then Ahmadabad. Various political leaders ‘condemn’ the attack and some even visit the blast sites. Television channels host debates to discuss the issue with some politicians also participating in it.The opposition blame the ruling government and thats it. And those who are responsible for this are sitting somewhere right inside India and they must be congratulating themselves for their cowardly act. It is deeply disturbing to see that how such heinous acts of cowardliness are perpetrated in the name of Allah.So whats the solution ? how does india fight back ?
Firstly we all need to understand that it is not a one man’s business to fight
terrorism. We need to stand united against this threat and play our role as an responsible citezen.Secondly India should shread its image of a soft nation. Enough of this peace loving nation status. Unless we develop a mind set of taking the death of every ordinary citizen as a national loss and taking revenge of his or her death by chasing, grabbing and punishing the culprits no matter what does it take, we should not expect to curb this menace of terrorism.
The time has come for India to take a stand, if India is to survive, it should learn strike back and strike bad hard.
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posted by Rishil Babu @ 9:53 AM,
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