The financial tsunami now inundating global economies and markets was brought on by imprudent easing of US lending norms and extreme over-leveraging by giant US investment banks, analysts say.
“Indian companies are getting confident,” said Jagannadham Thunuguntla, chief strategist at SMC Capitals Ltd. in New Delhi. “They are getting ambitious; they want to become multinationals.”
Samachaar June 24, 2009 Sensex Closes Flat, Most Of Day’S Losses Recouped (Ro...Jagannadham Thunuguntla
“We are in the middle of a correction and it was always on cards as the rally was only being fuelled by excess liquidity and not by strong fundamentals,” said Jagannadham Thunuguntla, equity head at SMC Capitals, one of India’s largest brokerage firms.
“The volatility will be there at least till the futures and options contract expiry,” he added.
Smas Hits June 24, 2009 Sensex Closes Flat, Most Of Day’S Losses Recouped (Ro...Jagannadham Thunuguntla
The Indian stock market recovered most of its losses by the closing bell, with the key Sensex index ending only 2.21 points or 0.02% lower than the previous day's close. While the markets opened lower, broader indices such as the BSE midcap ended up 0.24% as trading volumes increased ahead of futures and options contracts expiring later in the week. Foreign investors sold $40.7 million worth of shares during the day's trading.
“Indian companies are getting confident,” said Jagannadham Thunuguntla, chief strategist at SMC Capitals Ltd. in New Delhi. “They are getting ambitious; they want to become multinationals.”
Samachaar June 24, 2009 Sensex Closes Flat, Most Of Day’S Losses Recouped (Ro...Jagannadham Thunuguntla
“We are in the middle of a correction and it was always on cards as the rally was only being fuelled by excess liquidity and not by strong fundamentals,” said Jagannadham Thunuguntla, equity head at SMC Capitals, one of India’s largest brokerage firms.
“The volatility will be there at least till the futures and options contract expiry,” he added.
Smas Hits June 24, 2009 Sensex Closes Flat, Most Of Day’S Losses Recouped (Ro...Jagannadham Thunuguntla
The Indian stock market recovered most of its losses by the closing bell, with the key Sensex index ending only 2.21 points or 0.02% lower than the previous day's close. While the markets opened lower, broader indices such as the BSE midcap ended up 0.24% as trading volumes increased ahead of futures and options contracts expiring later in the week. Foreign investors sold $40.7 million worth of shares during the day's trading.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Unlock Your Potential with NCVT MIS.pptxcosmo-soil
The NCVT MIS Certificate, issued by the National Council for Vocational Training (NCVT), is a crucial credential for skill development in India. Recognized nationwide, it verifies vocational training across diverse trades, enhancing employment prospects, standardizing training quality, and promoting self-employment. This certification is integral to India's growing labor force, fostering skill development and economic growth.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
Samachaar Oct 3, 2008 - Inside the financial tsunami - what brought it on
1. Inside the financial tsunami - what brought it on
October 03, 2008
New Delhi The financial tsunami now inundating global economies and markets was brought on
by imprudent easing of US lending norms and extreme over-leveraging by giant US investment
banks, analysts say. The dotcom bubble burst in 2000 and the collapse of the World Trade
Centre, a mighty symbol of US economic and financial prowess in 2001, made Alan Greenspan,
the then chief of the US banking regulator, the Federal Reserve, believe that a US recession was
a certainty and it had to be staved off.
His solution: Increase liquidity in the system. The mechanism: Ease lending norms, especially
for the real estate sector.
The result was aggressive lending by banks to home loan borrowers, defying time-tested,
conservative and prudent norms of ensuring that the loan amount did not exceed the value of the
asset being purchased.
Thus was born the concept of home equity, when if you asked for a $1 million loan to buy a
house, US banks lent $1.2 million in the belief that real estate prices will only go up and never
come down.
In contrast, in India or in all other countries in the world, banks lend only about 80-85 percent of
the value of the asset, and the borrower has to pay the balance.
Greenspan’s thinking was that lenders would use the extra funds to spend on other items of
consumption and recession would be beaten.
Not only that, in their bid to capture market share, banks lent even to people with doubtful
creditworthiness.
In the US there are three classes of borrowers - prime rate borrowers who have the highest
creditworthiness, followed by what are called Alt A Mortgage borrowers and finally subprime
borrowers who have the least creditworthiness.
As banks can charge a higher interest rate from borrowers with less than best creditworthiness,
aggressive marketing saw a more than prudent share of loans going to the least creditworthy
borrowers.
“Whether we like it or not, the laws of gravity work in financial markets as well and what goes
up ultimately comes down,” Jagannadham Thunuguntla, head of the capital markets arm of
India’s fourth largest share brokerage firm, the Delhi-based SMC Group, told IANS.
2. Despite a bull run in the US real estate market due to the big rush in home purchases during
2002-06, the party had to end some time and prices began to come down.
Real estate prices have fallen 16 percent till July 2008 since the corresponding month last year
and had fallen by a similar amount the previous year.
Suddenly, from early this year, banks found their so-called home equity had completely vanished
and their loans were not protected by the value of the assets bought with the loans.
Alongside, there was another development.
In normal manufacturing and other businesses, the debt to equity ratio is usually in the range of
1.33-2 to 1.
This means, out of the total capital invested by a business, if $1 is the promoter’s equity,
borrowed funds invested in the business is $1.33 to $2.
But in the banking industry, the debt-equity ratio is always much higher because the deposits of
banks are considered as debts of the bank.
Commercial banks, however, despite their high loan-deposit ratio (conceptually similar to debt-
equity ratio) are highly regulated as they take deposits from the public and have to follow strict
lending, provisioning and capital norms.
Investment banks, such as Goldman Sachs, for example, are, however, very lightly regulated and
do not have to follow these prudential lending and capital norms.
Just before Goldman Sachs got into trouble two weeks ago, it had debts of about $1.08 trillion
against its own equity capital of only $40 billion. This means it had a debt to equity ratio of
24.7:1.
To simplify the explanation, let us say its debt-equity ratio was 24:1. That means of every $25 it
was investing or lending, $1 was its own money and balance $24 was borrowed money.
In this situation, even if it incurs a loss of four percent on its loans or investments, the bank runs
up a loss of $1, which is four percent of $25 originally invested.
This in turn means the entire equity capital of the bank is wiped out and it has to file for
bankruptcy because losses have to be borne by the owner of equity capital. Borrowed funds have
to be returned to borrowers.
It is very usual for any bank to make a mistake in lending or investment decisions to the extent of
four percent.
3. In the real estate boom of 2002-06, banks had lent an imprudent share to Alt A mortgages and
subprime borrowers. Running up a four percent or more non-performing assets was just waiting
to happen.
When it happened, Goldman Sachs as also all the other investment banks which had equally high
debt to equity leveraging found their capital eroding too fast for their comfort.
Lehman went down first, followed by the others and Goldman and Merrill Lynch are surviving
by infusing more capital through sale of some of their assets.
For example, after the crisis broke, US investor and one of world’s richest men Warren Buffet
and others stepped in and pumped in about $7.5 billion equity into Goldman Sachs and brought
down its leveraging to 20.8:1.
In good times, however, even a four percent return on their capital, that means a return of $1 on
the $25 invested would translate into a 100 percent return on these banks’ own equity capital of
$1, Thunuguntla explained.
The problem with the European banks was they too had big exposures in the US market during
the real estate bull phase and they too did not follow prudent loan to deposit ratios.
A prudent loan-deposit norm for commercial banks is around 80 percent. That means they lend
80 percent of their deposits and keep the balance 20 percent to service depositors.
Northern Rock, the first British or European bank to be hit by the subprime crisis and
nationalised in 2007 had a loan-deposit ratio of 215 percent.
Most of the other banks hit also have excessive loan-deposit ratios of around 160 percent so that
when faced with troubled assets they are no more able to service depositors.
“Indian banks are safe and sound mainly because of our extremely prudent banking regulations,”
Thunuguntla said.