ID :
19578
Mon, 09/15/2008 - 15:38
Auther :
Shortlink :
http://m.oananews.org//node/19578
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Lehman`s bankruptcy to have `limited` impact on S. Korea: official
SEOUL, Sept. 15 (Yonhap) -- The bankruptcy protection filing by global investment bank Lehman Brothers Holdings Inc. will have a "limited" impact on South Korea's financial market, a senior financial policymaker said Monday, rushing to soothe anxieties over the development.
"We have been making preparations for (Lehman's bankruptcy protection filing)," said Rhee Chang-yong, vice president of the Financial Services Commission (FSC). "The direct exposure by local financial institutes to Lehman Brothers will be limited."
"There will be indirect impact from the Lehman debacle if its bankruptcy filing shakes the global financial markets," Rhee said, "(But) There are no liquidity problems that could be sparked by the Lehman problem."
The comments come as the 158-year-old investor reportedly filed for bankruptcy, burdened by US$60 billion in soured real-estate holdings.
Lehman Brothers has strived in vain to find partners who can provide a lifeline following the worst credit crunch in decades. South Korea's state-run Korea Development Bank recently withdrew its bid to buy the embattled investor.
Analysts and market watchers are bracing for the worst ever start of Wall Street this week. The Korean stock markets will start on Tuesday after the three-day Chuseok holiday ends Monday here.
According to industry sources, local financial institutions invested more than $700 million in the world's fourth-largest investment bank.
The FSC convened an emergency meeting to discuss countermeasures and is expected to announce details later in the day on the exposure of local financial institutions to Lehman-related investments, sources close to the matter said.
"We have been making preparations for (Lehman's bankruptcy protection filing)," said Rhee Chang-yong, vice president of the Financial Services Commission (FSC). "The direct exposure by local financial institutes to Lehman Brothers will be limited."
"There will be indirect impact from the Lehman debacle if its bankruptcy filing shakes the global financial markets," Rhee said, "(But) There are no liquidity problems that could be sparked by the Lehman problem."
The comments come as the 158-year-old investor reportedly filed for bankruptcy, burdened by US$60 billion in soured real-estate holdings.
Lehman Brothers has strived in vain to find partners who can provide a lifeline following the worst credit crunch in decades. South Korea's state-run Korea Development Bank recently withdrew its bid to buy the embattled investor.
Analysts and market watchers are bracing for the worst ever start of Wall Street this week. The Korean stock markets will start on Tuesday after the three-day Chuseok holiday ends Monday here.
According to industry sources, local financial institutions invested more than $700 million in the world's fourth-largest investment bank.
The FSC convened an emergency meeting to discuss countermeasures and is expected to announce details later in the day on the exposure of local financial institutions to Lehman-related investments, sources close to the matter said.
