Coming to India, some investors are worried whether any of their banks or investment firmss had any exposure to Lehman Brothers, directly or indirectly. There is some news available about the ICICI Bank exposure to Lehman Brothers and ICICI Bank officials claim that the losses are not so phenomenal or significant.
As per the news, the ICICI Bank's UK division has a lot of exposure to Lehman Brothers Bondsholds 57 million euro of senior bonds of Lehman Brothers Inc. "Potential losses are not material," the bank said in a statement.
The bank said it had undertaken transactions with the US-based troubled investment banker as part of treasury operations.
"The exposure to Lehman Brothers' entities on account of these transactions and potential loss thereon are not material," it said.
However, the ICICI Bank shares yessterday went down by around 6 per cent to Rs 591.35 on the Bombay Stock Exchange.
Lehman Brothers, which is a 158-years-old-financial institution has filed for bankruptcy protection, after losing around $60 billion (About Rs 2,76,000 crore) in sinking real-estate market.
Another investment bank Merrill Lynch is being bought over by Bank of America for $50 billion, while world's largest insurer American International Group (AIG) is also facing financial crisis.
Also, Lehman has suspended operations of its three Asian arms. Lehman Brothers Asia, Lehman Brothers Securities Asia and Lehman Brothers Futures Asia Ltd have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice.
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