Oil prices rise after bigger-than-expected drop in UScrude supplies

 

 

 

NEW YORK (AP) -- Oil prices are rising after the government said U.S. crude supplies fell far more than expected last week.

The Energy Information Administration said Monday that U.S. crude stocks fell by 6.3 million barrels for the week ending Sept. 12, much bigger than the 3.7 million barrel drop expected by analysts surveyed by energy research firm Platts expected.

The decrease was due to a shutdown of virtually all U.S. Gulf Coast oil production ahead of the passage of Hurricanes Gustav and Ike.

Light, sweet crude for October delivery was up $2.20 to $93.35 a barrel on the New York Mercantile Exchange.

However, because the decrease in production was due to weather factors, crude's recent price decline is likely to resume in the near future.

 

US govt spends $900 bn to take over failing companies

 

 

NEW DELHI: With the $85 billion bailout of AIG, the world's largest insurance company, the US government has spent $900 billion this year in taking over failing companies. And, with the wolves baying at the doors of several others, this may well go up in the coming days. There are many who argue that government's intervention is not fair. Nouriel Roubini, a professor at New York University's Stern School of Business, who had predicted this bursting of the bubble years ago, has called it "privatization of profit and socialization of losses". This is because when the going is good for these private sector companies they rake in the profits, but when things get rough taxpayers' money is used to bail them out. Several critics have also called for a new regime of regulations in the financial sector to prevent a repeat. Senator Charles Schumer, chairman of the US Congress' Joint Economic Committee recently said, " the credit crisis is as much a failure of regulation as it is a failure of the marketplace. Meanwhile, the world watches as the home of laissez faire saves itself by desperately clutching at life-saving government support." A decade ago, when the sizzling hot hedge fund Long Term Capital Management (LTCM) turned belly-up , the Federal Reserve Bank of New York state stepped in and arranged a bailout. All the big names - Goldman Sachs, AIG, Lehman Brothers, Berkshire Hathaway, Merril Lynch - were there to rescue LTCM which had been yielding 40% returns on investment till then. These investment bankers pooled together $3.2 billion and bought out LTCM. But, experts criticized government's intervention, calling it a moral hazard. The intervening decade was the golden age of unbridled profit for investment firms. The government, dominated by a "hands off " gospel, failed to evolve regulations and oversight to keep pace with the changes. And now it is pay back time. As the subprime crisis unraveled, the first big casualty this year was one of the biggest US banks, Bear Stearns. The Federal Reserve Bank took $29 billion worth of bad assets off Bear Stearns as collateral, paving the way for JPMorgan Chase to take over the company. Then came the biggest ever takeover in history. Freddie Mac and Fannie Mae were mortgage lenders initially set up by the government but now privately managed. When their mortgages started going bad, the government stepped in with $200 billion to save both from collapsing. Meanwhile, the tide of foreclosures - confiscation of homes by lender because of payment default - that swept the US forced the government to provide $300 billion in the Hope for Homeowners programme. This was effectively, a subsidy to families who were facing foreclosure because of inability to pay back loans with increased interest rates. US government also provided $4 billion to local communities to buy and repair houses that had been abandoned due to foreclosures. Apart from pouring in billions, the US government has also been trying to stem the rot by piecemeal regulation. It allowed billions of dollars worth of safe Treasury bonds to be used as collateral for junk bonds. It prohibited "naked" short selling in 19 stocks of sinking firms. In this innovative way of profiteering, brokers used to sell stocks they didn't even own. Courtesy: Times of India They were raking in huge profits from selling shares of companies that were in trouble - causing more trouble for them. However, all this was closing the barn door after the horses had fled

WPI inflation 12.14% Vs 12.10 for week ended Sep 6

 

WPI inflation 12.14% Vs 12.10 for week ended Sep 6
Thursday, Sep 18

The annual inflation rate and wholesale price index weekly
data, based on Government of India announcements:

LATEST: Week ended Sep 6: Index for all commodities 241.1, up 0.1%
from 240.8 a week earlier; annual point-to-point inflation rate 12.14%
vs 12.10% a week ago, and 3.46% in the year ago period.

Morgan eyes $5 bn asset-base from Indian banking biz

 

 

The company has targeted to build up an asset-base of around USD 5-billion in the medium-term and USD 10-billion over the next few years, Morgan Stanley India Capital Services, Executive Director, Himanshu Jain said in Mumbai.

"The growing income-levels in this market offer huge opportunities for wealth managers. We expect to attain an asset-base of USD 5-billion in the medium term and USD 10-billion over the next few years," Jain said.

The company would offer its wealth management services from Mumbai, Kolkata, New Delhi and Bangalore in the initial phase but will expand the reach later to more centres --Chennai, Chandigarh, Jaipur, Ahmedabad Pune and Hyderabad, its Manging Director, Asia (Singapore), Leslie S Menkes said.

"Once we reach the critical mass in terms of customers and business, we would move to other centres here," Menkes said.

The company has employed close to 100 professionals in the country and plans to hire more people in the months ahead , Menkes said.

Morgan Stanley's private wealth management services would mainly target high and ultra high networth Individuals having an investable surplus of a minimum USD 5-million, he said

 

http://www.financialexpress.com/news/Morgan-eyes-5-bn-assetbase-from-Indian-banking-biz/361628/

 

 

 

Equity Alert: FIIs net buy futures worth 8.18 bln rupeesMon

 

 

Equity Alert: FIIs net buy futures worth 8.18 bln rupees Mon
    MUMBAI--8:45AM--

 

 

On NSE, foreign institutional investors Monday net bought stock futures worth 5.79 bln rupees and index futures worth 2.39 bln rupees.

    Foreign funds net sold Indian shares worth 7.63 bln rupees on BSE and NSE
combined Monday, according to provisional data on NSE Web site.

    Nifty September ended at a 4-point discount to the spot index, with 4.1%
fall in open interest to 33.44 mln.

    --

 

Nifty closed at 4072.90, down 155.55 points, or 3.7%, from Friday.

    --

 

Nifty September ended at 4068.90, down 176.90 points, or 4.2%

 

Highlights of Reliance Infrastructure management'scomments at AGM

 

 

Highlights of Reliance Infrastructure management's comments at AGM
Tuesday, Sep 16

    MUMBAI - Below are the highlights of comments by Reliance
Infrastructure Ltd.'s Chairman Anil Ambani at the company's 79th
annual general meeting here today:

* Mumbai Metro rail project financial closure shortly.
* To complete Mumbai Metro rail by Sep 2010.
* Mumbai Metro rail earlier scheduled Sep 2012.
* Pre-qualified for 210-bln-rupee road project.
* Current EPC order book 210 bln rupees.
* Pursuing opportunities in metro rail sector.
* Sees EPC opportunities in nuclear energy.

 

ICICI denies talk top management selling bank's shares

 Wednesday, Sep 17

    NEW DELHI - ICICI Bank Ltd. today denied talk that its top management has
been selling the bank's shares over the last few days. India's largest private
sector bank said none of the members of its top management had sold
the bank's shares in the current year.

    "It has been brought to the notice of ICICI Bank that a malicious rumour
is being spread to the effect that some of the top management have been
selling ICICI Bank shares for the last few days. These rumours are baseless
and irresponsible," a statement from the bank said.

    ICICI Bank said it will report the matter to regulatory authorities for
action against those responsible for rumours.

    The bank's shares recouped some losses on the denial of share sale. At
14:55 PM, the shares traded at 563.40 rupees on National Stock Exchange, down
4.8% from close Tuesday but up from the intraday low of 530 rupees.

 

FundView: Franklin says foreign fund flows into Indianshrs may ebb

Wednesday, Sep 17.

 

    BANGALORE - Foreign fund flows into Indian equities is likely to be
impacted due to recent financial turmoil in overseas markets and increased
period of uncertainties, Franklin Templeton Mutual Fund said in its market
report.

    Foreign fund flows would be key determinant of equity market trend in the
near-term, the fund house said.

    Since beginning of calendar year until Tuesday, foreign institutional
investors have offloaded $8.362-bln (387.54 bln rupees) of Indian equities.

    Global investors have been withdrawing investments from Indian stock
market continuously since May.

    The fund house expects Indian companies' earnings growth to moderate to
15-20% over next three-to-five years. Domestic companies also face headwinds
in terms of rising interest rates and moderation in economic growth.

    The seventh largest domestic mutual fund with 277 bln rupees of average
assets under management expects India's economic growth to moderate, but
believes it is likely to be among the fastest growing economies in the world.

    Reserve Bank of India has revised the gross domestic product growth
forecast to 8% from 8-8.5% earlier.

    Persistent negative news flows from overseas financial markets like
US-based Lehman Brothers Holdings Inc filing for bankruptcy and American
International Group seeking bridge loan impacted equities globally, with
India being no exception.

    On the financial turmoil in global markets, the fund house said, "While
the recent crisis could prove to be cathartic for the global financial system
over the long term, there is no clarity if worst is over."

     Monday, market plunged 6% intraday. Monday, Bombay Stock Exchange's
30-Share Sensex settled at 13531.27, down 469.54 points or 3.4% from Friday.

    National Stock Exchange's 50-share Nifty closed at 4072.90, down 155.55
points or 3.7%.

    Late Tuesday, the U.S. Federal Reserve announced an $85 bln emergency
loan for AIG to prevent it from collapsing.

    At 2:48PM, Sensex was at 13304.56, down 1.59% from Tuesday while Nifty
was at 4013.35, down 1.51%.

    According to Franklin Templeton Mutual, Asian region has demonstrated
resilience amid these negative news flows, helped by increased intra-regional
trade and domestic consumption. However, markets have been impacted by
rise in foreign investor outflows.

    The mutual fund believes any surprise monetary easing in developed economies could provide some succour over the near term.

    The sharp fall in global crude oil prices and commodities is positive for
the Indian economy and could provide flexibility to RBI for managing the
monetary policy, the fund house remarked.

    The Indian central bank increased cash reserve ratio by 150 basis points
and its repo tender rate by 175 basis points to 9.00% each in this calendar
year so far, to tame inflation.

STRATEGY

    The fund house has been closely monitoring the situation and actively
seizing on the evolving opportunities.

    "Over the years, we have seen situations like these, and believe that
they provide a great opportunity to long term investors like us," Franklin
Mutual said.

ADVISE

    Rather than getting swayed by short-term market trends, Franklin
Templeton Mutual advises investors to beat market volatility by investing in
equity funds regularly through systematic investment plans.

 

 

 

What are exchange traded funds?

 

 

 

 

Of late ETF(Exchange traded fund) has gained more attention among the Indian investors. So what is all about ETF? What is ETF? ETFs are mutual fund schemes whose units can be sold or bought in the stock exchanges during the regular trading hours. They do not have cut off timings like other mutual funds for buying or selling units. You need a demat account to operate with ETF. Types of ETF Passive ETFs - These mutual funds mirror a index and invests in a same set of stocks which comprimises an index. It is similar to index funds. Active ETFs - These funds invest in a set of stocks that pertain to the mandate of the fund. How ETFs work? 1. ETF units have two prices - market price and NAV. So usually market price of ETF unit will be at discount or premium to underlying NAV. 2.Investor does not deal directly with mutual fund company for purchase of units, he purchases the units via stock exchange. 3. Direct purchase of units from mutual fund company is done by high net worth individuals or institutions, because the minimum number of units to be purchased will be very high and not affordable by retail investors. 4.By using arbitrage methods, mutual fund company tries to keep the difference between NAV and market price to minimum. Advantages of ETF 1.ETFs are cheaper than index funds. They have a expense ratio of 0.5 to 1% compared 1.5% of index fund. 2.They can be bought or sold during any time of the trading hours unlike mutual funds where u can purchase only at a NAV which is calculated at end of day. 3. They mimic the performance of underlying index better than the index fund. Disadvantages 1. You need to have a demat account and trading account to operate in ETF whereas in mutual funds you just need a pan card to invest. 2. You have to pay a brokerage of 0.5%-1% for trading via broker like icici direct,sharekhan etc. Who can invest? 1. Investors who want to mirror the performance of benchmark indices. 2. Investors who want to invest in asset classes like gold.

 

.

__,_._,___

Lehman Brothers' Letter to Warren Buffet

From the desk of Dick Fuld, Lehman Brothers CEO
Submitted By Mark McQueen 

Dear Mr. Buffett:

First off, I would like to thank you for meeting with me and my Lehman Brothers
team earlier this week. The opportunity to outline our plan to you personally was
the highlight of my professional career. I know that it has been a few years since you had an
office in Manhattan, and we aren't asking you to take a chair and a desk, but your steady hand at Salomon Brothers is an example of what all of us on Wall Street are so desperately seeking in these difficult times.

As I clearly outlined during our meeting, I firmly believe that an investment in Lehman Brothers
by Berkshire Hathaway is a classic opportunity for your great company to, once again, buy a
fabulous global franchise at a very fair price. This isn't at all like the situation that John
Gutfreund put you in, and I recognize that you are wary given your previous experience. Wall
Street has changed dramatically since 1991, it is far more of a franchise business that relies on
capital than the "people" business that you were once used to. As you mentioned, the $700
million Salomon deal was the single largest commitment of your career at that point; and I take your point that such sums are now just the bonus pool for the commodity division
But much has changed. Over the past year, our firm's market capitalization has shrunk by more than $30 billion (about 75%). All of the shareholder wealth that we've created over the past 10 years has been completely erased in a matter of months, and yet our firm has never had brighter opportunities nor a stronger safety net. This is the investment opportunity that we see for you and the rest of the Berkshire family. You have the opportunity to invest in the brokerage industry at prices not seen for a decade.

Our firm is poised to return to greatness, and many of Bear"s clients are coming our way.
Just the other day, a survey of U.S. institutional investors by Greenwich Associates found that
"among the largest players, [Lehman and JP Morgan] scored highest in providing their [fixed
income] clients the best support and understanding during the market turmoil." This survey,
conducted between February and April, also found that while JPMorgan was found to have
slightly more institutional trading relationships, Lehman Brothers had slightly more market
share. What this survey will confirm for you is that our trading desk has continued to serve our many international clients, even when other brokerage firms were pulling back. This bodes well for the next Bull Market.

I have spoken to both the Treasury Secretary and Chairman Bernanke, and they are prepared to assure you personally that Lehman will continue to have access to the Fed's discount window for many years to come, if so required. As such, our firm cannot fail in the traditional sense. The federal government's balance sheet is impregnable. This is an investment circumstance that rarely presents itself in the lifetime of any investor; even one as successful as your own.  We are very reluctant to raise capital at this juncture. Our recent $6 billion equity raise was intended to help us weather even the worst storm. I understand that some intermediaries reached out to you at that time, and that you rightly advised that your modus operandi was not to invest in a club format. I regret that anyone troubled you with the idea back in May, and recognize that by passing then, as you said in our meeting, you avoided suffering the 44% drop in our shares since that deal was announced on June 10th.

Your wisdom is clear. But this time it will be different.

As we discussed, approximately $145 billion of long-term debt is outstanding including current
year maturities of $18.5 billion with $8 billion of commercial paper. We have a plan to deal with
these debt tranches, but recognize that a partnership with you would be a tremendous asset when we return to the debt markets. My Treasury team advises that we could save in excess of 200 basis points on our medium term paper if Berkshire agreed to be our strategc investor prior to commencing our current year debt refinancing activities. The investors who joined our shareholder group in June recognize that much of what has happened over the past 5 weeks was unforseen. But no one likes losses, paper or otherwise. That being said, they will be elated if you join their ranks, let me assure you of that. That old saying, "dilution is your friend", rings all the more true when the name "Buffett" is involved in the dilution.

My partners and I are prepared to consider a $5 billion convertible preferred investment, paying an 8% annual cash yield, with redemption and retraction rights in, say, 20 years. Our stock
rallied yesterday on the back of the positive news out of Wells Fargo. But, with a sensible
discount to yesterday's closing price of $16.65, your firm would own approximately 33% of our Company, at closing. Naturally, we would very much want you to consider joining our Board of
Directors at the earliest opportunity. Other names would be welcome as well. 
As we both know, an announcement that Berkshire had agreed to invest capital in our firm would propel both LEH shares and the broader bank index. If yesterday's rally is any indication, you could earn a 25% return in a single day merely on the news of your financial commitment to me and our franchise.

 
I appreciate that you have been displeased with the role that you believe Wall Street has directly played in the credit crisis of the past 12 months. I noted that, during our meeting, you specifically named Lehman and Bear Stearns as two of the financial institutions that were at the forefront of the growth in the CDO, CLO, ABS, subprime and credit swap markets. 
As you know, the job of an investment bank is to bring to market the products that the market wants to buy. Although we pride ourselves in our Top 5 ranking in the M&A tables, the fees generated on advisory assignments pale in comparison to the revenue that flows from the underwriting side of our industry, whether it be equity, structured products or debt. I took your point that Wall Street must play a "quality control" role in the process of selling products to our clients, and I strongly believe that we did our utmost on that front.
We were so convinced that these vehicles were money machines that we bought them for the
accounts of our own captive hedge funds. We put our money where our mouths were. 
I understand that you are also dubious about the long term capability of the hedge fund industry to produce returns that exceed your sense of market norms. I have two points to make on that front. 

Hedge Funds are a key revenue driver on our trading desks, and excellent Prime Brokerage
clients as well. Up to 40% of our daily block trades are done for hedge fund clients. Moreover,
our ability to create our own hedge funds has generated substantial fees from institutional
investors and pension funds around the world. Although the recent SEC push to curtail some of the more attractive trading strategies of hedge funds such as ours may hamper our ability to beat the index, the fee streams that our funds generate are extremely valuable. Particularly at times, such as now, when the underwriting and advisory revenues are weaker than we would like.

However, if you would like a commitment from me to exit the hedge fund business, I will
certainly recommend such action to the Board should you agree to our investment proposal.
Although I am the leader at Lehman, I am always open to well-reasoned perspectives.
In summary, let me again thank you for agreeing to meet with us. I believe that you've been
presented with a unique investment opportunity, and one that is sure to be successful. Your
hallmark is to invest in top notch management teams, and I humbly submit that we've
demonstrated that we can navigate difficult waters.

With your financial commitment to our firm, the sailing will be smooth, and the entire U.S.
financial services industry will benefit from the rising tide that would surely follow a
commitment from Berkshire. The positive impact that would have on the economy is clear,
which would directly beenfit the rest of the Berkshire Hathaway portfolio of companies. This is
the way that America can exit the recession that you believe we are experiencing right now.
Thank you, in advance, for your time and consideration. As Senator McCain said himself, and I
passed along to you, "the country needs you", and we are honoured that you are considering this opportunity.

Yours Sincerely,

"signed"

Richard Fuld,
Chairman and CEO
Lehman Brothers Inc.

Lehman - Invested Indian cos lose Rs 2k cr

 

 

Lehman Brothers' move to file for bankruptcy wiped off more than Rs 2,000 crore from the market valuation of those Indian companies in which the US financial major has made equity investments.

Lehman itself recorded a loss of more than Rs 50 crore on its investments in India, which is nearly 10 per cent of its current holding worth an estimated over Rs 500 crore.

The loss would have been much higher if Lehman had not started offloading its equity holding in Indian companies late last month.

In a major selling spree that started on August 21, Lehman has sold shares worth close to Rs 400 crore in nearly 10 companies, including NIIT Ltd, Cranes Software, Amtek Auto, Amtek India, Fedders Llyod, Northgate, Mastek, Triveni Engg and Prajay Engg.

Prior to this sell-off, Lehman's Indian equity portfolio is estimated to have been worth more than Rs 1,000 crore, which has now nearly halved to about Rs 500 crore.

Most of the shares offloaded by Lehman in India, including those in NIIT, Cranes, Amtek Auto, Amtek India and Northgate, has been purchased by Deutsche Bank, according to the bulk and block deal data available with the bourses.

Besides the 10 companies where Lehman has offloaded its shares, Lehman had equity holding in about two dozen firms at the end of June quarter.

These firms include Spice Communications, Spice Mobile, Anant Raj Industries, Edelweiss Cap, IVRCL Infra, Tulip Telecom, Consolidated Construction, PSL, Orbit Corp, Development Credit Bank, Champagne Indage, Godawari Power, KPIT Cummins, West Coast Paper, IOL Netcom, Dhampur Sugar, Prithvi Info, Golden Tobacco, Emkay Global, Vijay Shanti Builders and Pioneer Embroidery

http://www.financialexpress.com/news/Lehmaninvested-Indian-cos-lose-Rs-2k-cr/361631/

 

Recent Activity

•  39
  New Members

Visit Your Group

Yahoo! Finance

It's Now Personal

Guides, news,

advice & more.

Weight Loss Group

on Yahoo! Groups

Get support and

make friends online.

Yahoo! Groups

Familyographer Zone

Join a group and

share your pictures.

.

__,_._,___

Lehman Brothers, An Innovator In Global Finance (History Timeline)

 

Lehman Brothers, an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world.

Access guides to the Lehman Brothers Collection of company deal books and business records held at Harvard Business School Baker Library Historical Collections

History Timeline

1840–1859

The history of Lehman Brothers parallels the growth of the United States and its energetic drive toward prosperity and international prominence. What would evolve into a global financial entity began as a general store in the American South. Henry Lehman, an immigrant from Germany, opened his small shop in the city of Montgomery, Alabama in 1844. Six years later, he was joined by brothers Emanuel and Mayer, and they named the business Lehman Brothers.

1850

Henry, Emanuel and Mayer Lehman founded the Firm in Montgomery, Alabama.

1858

Cotton was the cash crop of the time, and the Lehmans accepted it from the local farmers as currency to settle accounts. The brothers traded the cotton for cash or merchandise, becoming brokers for buyers and sellers of the crop. In 1858, they opened an office in New York, which was the commodity trading center of the country.

1860–1869

The Civil War disrupted the Lehmans' business. When hostilities ended, the brothers moved north and concentrated their operations in New York, where they helped establish the Cotton Exchange.

The post-war period witnessed the rapid growth of railroads, sparking the transformation of the nation from an agrarian to an industrial economy. At the time, Lehman Brothers' future merger partner, Kuhn, Loeb, was underwriting much of the financing for railroad construction.

Railroad bonds represented a significant advance in the development of capital markets. Their affordable price attracted a great number of individual investors and Lehman Brothers, recognizing a trend, expanded its commodities business to include the sale and trading of securities. The Firm also moved into the area of financial advisory, which provided the foundation for underwriting expertise.

1880–1889

During the vigorous economic expansion of the second half of the 19th century, Lehman Brothers broadened its expertise beyond commodities brokerage to merchant banking. Building a securities trading business, they became members of the New York Stock Exchange in 1887.

Setting the stage for future global growth, Jacob Schiff, a Kuhn, Loeb partner, led the Firm to establish investment-banking relationships in Europe and Japan.

1887

The Firm acquires a seat on the New York Stock Exchange

1889

Lehman Brothers underwrites its first stock offering

1900–1909

At the turn of the century, Lehman Brothers was a founding financier of emerging retailers, including Sears, Roebuck & Company, F.W. Woolworth Company, May Department Stores Company, Gimbel Brothers, Inc. and R.H. Macy & Company.

1920–1929

In the 1920s, Robert Lehman perceived dynamic changes occurring in the nation's economy, and focused the company on rapidly developing consumer industries such as retailing, airlines and communications. Lehman Brothers was a strong supporter of the entertainment sector and advised on the consolidation of major movie theater chains. Start-up ventures, including film studios RKO, Paramount and 20th Century Fox, benefited from financing arranged by the Firm.

Triggered by the stock market crash of 1929, the Depression placed tremendous pressure on the availability of capital. Lehman Brothers was one of the pioneers of innovative financing techniques such as private placements, arranging loans between blue-chip borrowers and private lenders. These loans offered strict safeguards and solid returns for lenders, while enabling borrowers to raise much-needed capital.

1929

The Lehman Corporation is created, a prominent closed-end investment company

1930–1939

The 1930s witnessed the explosive growth of radio and experimentation with a developing technology called television. Lehman Brothers underwrote the initial public offering for DuMont, the first television manufacturer, and helped fund the Radio Corporation of America, known as RCA.

Beginning in the 1930s, the increasing demand for oil set off waves of wildcat drilling in search of the resource. Companies like Halliburton and Kerr-McGee relied on Lehman Brothers for capital to fund their activities.

1940–1949

The end of World War II ignited an unprecedented era of prosperity, fueling the growth of consumer industries such as home appliances and auto manufacturing. Lehman Brothers became an important financial advisor and underwriter for many growing companies and established a number of long-term relationships that are still active today.

1949

The Firm establishes its 10 Uncommon Values® Portfolio.

1950–1959

Economic expansion accelerated in the 1950s with the dawn of the Electronics Age, and Lehman Brothers arranged start-up financing for companies such as Litton Industries. The Firm also lent its expertise and advisory skills to Burlington Mills, Schenley Industries and American Export Lines.

This period was also the beginning of the computer era, and Lehman Brothers provided IPO underwriting for industry pioneer Digital Equipment. The Firm later arranged the acquisition of Digital by Compaq.

The travel industry benefited from the sustained economic growth of the period, and Lehman Brothers sponsored the IPO of Hertz Rent-a-Car. The focus on transportation and travel continued into the 1960s, with Lehman Brothers advising Ford Motor Company, TWA, American Airlines and Continental Airlines.

At this time, consumer-driven companies such as General Foods, Campbell Soup and Philip Morris turned to Lehman Brothers to help finance the growth necessary to satisfy burgeoning demand for their products.

1960–1979

By the 1960s and 1970s, many of Lehman Brothers' clients were expanding overseas. To meet their financial needs, the Firm opened an office in Paris in 1960, followed by a location in London in 1972 and Tokyo in 1973. This growing international presence was enhanced by the merger with Kuhn, Loeb.

With continued advances in electronics and information technology in the 1970s, Lehman Brothers worked with leading players such as IBM, Digital Equipment Corporation and Loral.

1975

The Firm acquires Abraham & Co.

1980–1989

In the 1980s, Lehman Brothers played an important role in the dawn of the Information Age, helping fund such companies as Intel and new technology businesses of the period, which later became the leading players in the high-tech revolution.

During the robust merger and acquisition activity of the 1980s, Lehman Brothers advised companies such as Chrysler, American Motors, General Foods, Philip Morris and Hoffman-LaRoche on expanding domestic and international operations.

In the mid-1980s, breakthrough research in the life sciences introduced the biotech era, revolutionizing the healthcare industry. Lehman Brothers assisted a number of new businesses in obtaining the capital needed to fund research and development. A leading advisor to the healthcare sector, the Firm worked with major pharmaceutical companies during the international consolidation and globalization of the industry.

1984

American Express acquires Lehman Brothers and merges the Firm with Shearson.

1986

Lehman Brothers acquires a seat on the London Stock Exchange.

1988

Lehman Brothers acquires a seat on the Tokyo Stock Exchange.

1990–1999

American Express divested Shearson in 1993, and the independent Firm once again became known solely as Lehman Brothers.

1994

The Firm becomes independent through a public stock offering and Lehman Brothers Holding Inc. common stock commences trading on the New York & Pacific stock exchanges.

Lehman Brothers opens an office in Tel Aviv, Israel, building upon its long-term presence in that country.

1995

The Firm earns recognition as "Global Bond House of the Year" by International Finance Review.

1998

Lehman Brothers joins the S&P 500 Index and establishes its 10 Uncommon EuroValues portfolio.

1999

Lehman Brothers establishes its first venture capital fund and celebrates the 50th year of its 10 Uncommon Values® portfolio.

Lehman Brothers establishes an alliance with Bank of Tokyo-Mitsubishi for Japanese M&A.

The Firm passes the $1 billion mark in annual net income for the first time.

2000+

Lehman Brothers celebrates its 150th year anniversary.

The Firm joins the S&P 100 Index and its stock price hits $100 for the first time.

Lehman Brothers becomes the first firm to underwrite corporate debt on the Internet.

The Firm launches LehmanLive®, a Web site that offers clients around the globe access to a vast array of services and proprietary information 24 hours a day.

2001

The Firm resumes fixed income trading two days after Sept. 11 and equity trading when U.S. markets open.

Lehman Brothers brings the first IPO, Given Imaging, to market after Sept. 11.

The Firm buys 745 Seventh Ave. for its new global headquarters in Midtown Manhattan and purchases additional space in New York City and New Jersey.

Lehman Brothers becomes a member of the Amsterdam Stock Exchange.

2002

Lehman Brothers moves into its new global headquarters in Midtown Manhattan.

The Firm establishes the Wealth and Asset Management Division*.

Lehman Brothers executes the largest financial services IPO in history for CIT Group, and the largest European leveraged buyout in history for KKR and Wendel Investissement.

The Firm lead-manages the largest-ever U.S. dollar denominated debt issue for GECC.

Lehman Brothers acquires Lincoln Capital Management's fixed income business*.

* In 2005, the Wealth and Asset Management Division was renamed the Investment Management Division and Lincoln Capital Fixed Income Management Company, LLC was renamed Lehman Brothers Asset Management LLC.

2003

Lehman Brothers acquires Neuberger Berman, positioning the Firm as an industry leader in the wealth and asset management business.

The Firm moves to its new European headquarters at 25 Bank Street in Canary Wharf.

Lehman Brothers acquires The Crossroads Group*, expanding the Firm's private equity fund investment management business.

Moody's Investors Service raises the Firm's long-term credit rating to A1 and the LBI broker-dealer credit rating to Aa3, representing the third ratings upgrade in the last four years.

* In 2005, Lehman Crossroads Investment Advisers, LP (d/b/a The Crossroads Group) was renamed Lehman Brothers Private Fund Advisers, LP.

2004

Lehman Brothers moves to its new Asia headquarters in Tokyo's Roppongi Hills.

The Firm advises on two of the top five announced Mergers & Acquisitions transactions worldwide: Cingular Wireless' acquisition of AT&T Wireless Services; and Sprint's acquisition of Nextel Communications.

Lehman Brothers executes the largest capital markets transaction in the history of the U.S. utility industry for Pacific Gas & Electric and the largest IPO globally in 2004 for Belgacom SA.

The Firm posts record financial results, including best-ever net revenue, net income, and earnings per share. The Firm increases its dividend by 33%.

Assets under management at the Firm's Investment Management Division rise to a record $137 billion.

2005

Lehman Brothers achieves record revenues, net income and earnings per share based on record results in each business segment and region.

Standard & Poor's upgrades Lehman Brothers' long-term senior debt rating to A+ from A, citing diversified earnings base and strong risk management.

The Firm's assets under management grow to a record $175 billion.

Named "Best Investment Bank" by Euromoney in its 2005 Awards for Excellence.

Lehman Brothers opens an office in Mumbai, India.

2006

Lehman Brothers achieves record net revenues, net income and earnings per share for the third consecutive year based on record results across all business segments and regions.

Ranks #1 in the Barron's 500 annual survey of corporate performance for the largest companies in the U.S. and Canada.

#1 dealer on the London Stock Exchange by trading volume.

Advises clients on the three largest global M&A deals announced in 2006: AT&T's acquisition of BellSouth; Gaz de France's merger with Suez* (pending); Endesa's defense mandate resulting from E.ON's takeover offer** (withdrawn).

The Lehman Brothers Centre for Women in Business officially launches at the London Business School.

All transactions appear as a matter of record only.
Source: Thomson Financial, 1 Jan 2006 - 31 Dec 2006
* Advisor to the Republic of France, Gaz de France's majority shareholder
** Also acted as advisor to Endesa on a consortium's (Enel and Acciona) subsequent takeover offer in 2007

2007

Lehman Brothers ranks #1 "Most Admired Securities Firm" by Fortune.

Achieves record net revenues, net income and earnings per common share (diluted) for the fourth consecutive year based on record results in all three business segments.

Acts as financial advisor on largest-ever M&A transaction in financial institutions sector: $98 billion acquisition of ABN AMRO by a consortium of the Royal Bank of Scotland, Santander and Fortis.*

#1 dealer on the London Stock Exchange by annual trading volume for the third year in a row.

Creates the Lehman Brothers Center for Global Finance and Economic Development at Spelman College, the #1 ranked institution among historically black colleges and universities by U.S. News & World Report.

Establishes the Council on Climate Change to bring together leaders from industry, policy and academia to facilitate constructive dialogue regarding climate change policy formulation and its impact on business.

 

 

What to look for in a fixed deposit?

 

 

Fixed Deposit is considered as a safe haven for the investors, but there is some level of scrutiny to be done even in Fixed deposits. Fixed Deposits are not offered only by public sector banks, they are offered by large corporates, co operative banks and other financial institutions. So the FDs in non psu banks are not "totally" secure. They can technically default on payments if the financial institution is caught in a trouble. Though the occurence of such an event is very minimal, lets look at some basic fundamentals to look at before putting your money in a FD. Credit Profile Check for the credit ratings of the instruments in which the bank FD is depositing the money.The rating of AAA is of higher quality. The higher the credit rating, the lower the return it delivers. Do not chase for a FD which gives 2% extra than the other prevailing FDs, because the risk exposure is higher in such a FD. Rate of Return Check the return on FDs prevailing in the market and choose an FD which is relatively equal or slightly higher than the rest of FDs in place. Interest Payout Check out the different interest payout options. Some banks provide monthly,quarterly interest payout. Suppose you want a steady monthly income, you can opt for monthly interest payout option. If you are growth investor, you can opt for the interest to be accrued to the prinicpal in the end of an year. Duration Find a FD which matches your requirement of fund down the line. If you want fund 3 years down the line, go for a FD with 3 years duration. You will get benefited from the compounded interest rate over 3 years. Premature withdrawal penalty People often quit an lower interest rate FD and go for a higher interest rate FD. In such a case, you need to pay a penalty for breaking the FD. So you need to take into account the expense of breaking the existing FD and opt for a new FD. Thanks, Subbu

__._,_.___

 

Recent Activity

•  28
  New Members
•  2
  New Files

Visit Your Group

Yahoo! Finance

It's Now Personal

Guides, news,

advice & more.

Need traffic?

Drive customers

With search ads

on Yahoo!

Family Photos

Learn how to best

capture your

family moments.

.

__,_._,___

Sharekhan Investor's Eye dated September 15, 2008

 

 

 

Investor's Eye [September 15, 2008] Sharekhan

Summary of Contents SHAREKHAN SPECIAL Monthly economy review For the period August 1–September 15, the BSE Bankex has appreciated by 0.9% compared with a 7.7% decline in the Sensex during the same period. The outperformance by the banking sector was primarily driven by the widespread expectations of reforms in the banking sector as well as the easing of the inflationary pressures (global commodity prices have declined in the past few weeks). However, against the backdrop of tight liquidity conditions, moderating credit growth and a likely strain on the quality of banking assets, the fundamental outlook for the banking sector remains bleak. Hence, we believe that the upside to banking stocks is largely capped in the short term. However, from the perspective of a medium to longer term, the banking stocks look attractive at the current valuations. STOCK UPDATE Crompton Greaves Cluster: Apple Green Recommendation: Buy Price target: Rs367 Current market price: Rs248 MSE Group fits in strategically Crompton Greaves has acquired MSE Power Systems Inc and its subsidiaries, MSE Engineering LLC and MSE West LLC (MSE Group). MSE Group is based out of the USA and is engaged in providing engineering, procurement and construction (EPC) solutions along with commissioning and testing services for medium and high voltage substations and transmission line projects. Crompton Greaves will pay a total enterprise value of USD16 million (approximately Rs73.6 crore) for the acquisitions. SECTOR UPDATE Information Technology Multiple headwinds may play spoilsport Key points Tech companies are facing headwinds from multiple factors. The condition of banking and financial services clients from the USA is only getting worse. The malaise is spreading to the European region, which was initially touted as an important region to offset the likely slowdown in the business from the US geography, with the data from both UK and Germany showing distinct signs of an impending slowdown. This puts a question mark on the possible revival of demand in the latter part of 2008 and even CY2009. The currency headwinds are only adding to the concerns related to global demand environment. Though the rupee depreciation against the US dollar is fundamentally positive for the export-oriented tech sector, the benefits would not follow immediately as most of the companies have significant foreign exchange (forex) forward cover. Moreover, the rupee has appreciated by 4.5-5% against the Euro and the Pound Sterling each (the two currencies accounts for close to 30% of the billing for frontline companies) in the past two months. That is not all. The appreciation of the US dollar against the Euro and the Pound Sterling would adversely impact the financial performance in US GAAP terms. This leads to speculation that some of the frontline tech companies might miss Q2FY2009 US dollar guidance and may have to revise downwards their FY2009 guidance in the US dollar terms. On the brighter side, the depreciation of the rupee against the US dollar will positively impact the margins in Indian GAAP performance. Moreover, the street is still factoring in the exchange rate of Rs42-42.5 for FY2009 and FY2010. Any revision in the exchange rate assumption to Rs45 per dollar would have a positive impact of 4-6% in the earnings estimate for FY2010.  Given the multiple headwinds, tech stocks are likely to under perform in the coming months. The anti-outsourcing rhetoric in the run up to the US presidential elections would also dampen the sentiments. Further, the street would keenly wait and watch the ability of Infosys Technologies (Infosys) and Satyam Computer Services (Satyam Computer) to meet their Q2 guidance. The revision of guidance for FY2009 is also another important event that would provide direction to tech stocks. We had already downgraded Wipro and HCL Technologies to Hold, however we maintain Buy on Infosys, Satyam and Tata Consultancy Services (TCS) with a 12-month perspective, as most of the negatives seem to be priced in the current valuations.    Click here to read report:  Investor's Eye

Regards, The Sharekhan Research Team