Sub Prime Starts Rattling Asian Banks
Singapore's DBS Group Holdings, Industrial and Commercial BC, state-controlled Bank of China and its Hong Kong subsidiary, BOC Hong Kong...
all revealed a combined exposure to the U.S. subprime mortgage market of almost $13 billion.
Bank of China, the 2nd largest bank has exposure of $9.7 Billion or 3.8% of total holdings, BofC Hang Seng stock down 6%, mainland China Shanghai up 1%.
BofC's Hong Kong, the 2nd largest lender in Hong Kong has exposure of $1.6 Billion or 1.2%, UBS & Morgan Stanley cut the stocks rating.
Industrial & Commercial BC, the worlds largest lender by volume, has exposure of $1.23 Billion or 4.32%, stock down 2%.
Singapore's DBS Group has $1.2 Billion in CDO exposure or $722 Million more than originally reported on Aug 7th.
The additional exposure is through a special purpose vehicle, or conduit, that issues commercial paper to meet interest payments on the extra $722 Million.
For info on Enron like conduits and their widespread use, read here, here and here
Bond Rating Service Fitch claims the exposure is low, and they see little risk to the banks from the credit crisis.
Should we trust the #3 bond rating service Fitch? On June 18, 2007, the Federal Reserve Board stopped using Fitch Investors Service as a credit rating source. Nuff said.
Enquiring Naybobs should read our previous post on why the sale of this MBS was the largest "bait & switch" in history.
Which goes to explaning why the debt's ratings are worthless; and is riddled with inferior sub prime loans.
FYI, It is estimated that the Chinese "Fed" or Central Bank PBOC has exposure of over $100 Billion.
all revealed a combined exposure to the U.S. subprime mortgage market of almost $13 billion.
Bank of China, the 2nd largest bank has exposure of $9.7 Billion or 3.8% of total holdings, BofC Hang Seng stock down 6%, mainland China Shanghai up 1%.
BofC's Hong Kong, the 2nd largest lender in Hong Kong has exposure of $1.6 Billion or 1.2%, UBS & Morgan Stanley cut the stocks rating.
Industrial & Commercial BC, the worlds largest lender by volume, has exposure of $1.23 Billion or 4.32%, stock down 2%.
Singapore's DBS Group has $1.2 Billion in CDO exposure or $722 Million more than originally reported on Aug 7th.
The additional exposure is through a special purpose vehicle, or conduit, that issues commercial paper to meet interest payments on the extra $722 Million.
For info on Enron like conduits and their widespread use, read here, here and here
Bond Rating Service Fitch claims the exposure is low, and they see little risk to the banks from the credit crisis.
Should we trust the #3 bond rating service Fitch? On June 18, 2007, the Federal Reserve Board stopped using Fitch Investors Service as a credit rating source. Nuff said.
Enquiring Naybobs should read our previous post on why the sale of this MBS was the largest "bait & switch" in history.
Which goes to explaning why the debt's ratings are worthless; and is riddled with inferior sub prime loans.
FYI, It is estimated that the Chinese "Fed" or Central Bank PBOC has exposure of over $100 Billion.
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