Lehman collapse, thai banks exposure : 3,5 or 6,7 billions ?

The US have Paulson and Bernanke. France has miss Lagarde. The UK can count on Alister Darling… Virtually, every country has its own sad clown. The man or the woman, like droopy, whose job is to repeat over and over, like a headless chicken that :

-the market is healthy (phase 1)
-there are some imbalances (phase 2)
-the crisis will be contained (phase 3)
-bottom out, confidence is there, everything will be better next quarter (phase 4)
-holly shit, where is my life jacket and my bottle of whisky (phase 5, the one that is coming)


In Thailand, we have Tarisa, the governor of the Bank of Thailand. Let’s be honest : like the others, her job is ungrateful.

Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday calmed the public, saying that the problems would not pose a direct impact on Thai financial institutions.

Exposure by Thai commercial banks in the Lehman Brothers debacle amounted to only Bt6.7 billion, a small portion compared to their total lending of Bt7 trillion.

Liquidity in Thailand is still ample, she said, and there is no need for injecting more funds into the system.

Her data apparently contradicted that released by Nattapol Chavalitcheevin, president of the Thai Bond Market Association, who said Tuesday that Thai commercial banks are expected to suffer an estimated loss of Bt3 billion from total exposures of Bt4.3 billion in their investments with Lehman Brothers. (TNA)

You have to admire the “her datas apparently contradicted…” Yes sweet sugar : 3,5 and 6,7 are definitely different numbers. πŸ˜‰

Anyway. Poor Tarisa. She has absolutly no idea of what is going to happen. She’s playing with words saying “no direct impact“…

Soon, she’ll learn what “indirect impact” means.

6 Responses to “Lehman collapse, thai banks exposure : 3,5 or 6,7 billions ?”

  1. 1 FDL 18 September 2008 at 2:49 am

    After Bear Stearns, Lehman Bros, Merrill Lynch and then AIG . . . who else of the mighty will fall? (not to mention thousands of smaller banks that we can be sure need only a little nudge to topple over).

    Greed trumps prudence as usual at wild Wall Street. Now we know what those mega-million bonuses to brokers/investment houses execs was all about . . . chasing short-term profits (to get their bonues) . . . by leveraging to the hilt . . . and financial deregulation allowing all of these unbridled greed to breed even more greed to Godzilian proportions.

    Oh well . . . let the bloodbath go on . . . a long overdue cleansing is what is happening.

    It was Alan Greenspan, after all, who goaded Wall Street to ‘financial exuberance’.

  2. 2 Patiwat 18 September 2008 at 4:09 am

    So, time to go back to stocking up on Gold & Silver… the inflation tsunami seems imminent.

  3. 3 ThaiCrisis 18 September 2008 at 4:28 am

    ->Patiwat. The gold shot up yesterday at the exact moment when the US Treasury announced that it will lend to the FED 40 billions of new treasuries.
    The FED’s balance sheet is indeed running low (after all the bailouts).

    My point : as soon as people had the proof that the US started (a little bit) the printing press (inflation), then the gold went up.

    And this morning, we read that’s it’s not 40 billions but 100 billions !!


    And it will continue. The FED says very clearly that it will increase its role. AKA continue to take in “collateral” all the radioactives “assets” of many financial institutions, against good treasuries.

    They have only one solution left indeed : monetization of the debts.

    The fanatics of gold and its role through history were -apparently- right.

  4. 4 Bedwyr 18 September 2008 at 6:51 am

    Whilst Tarisa’s job is unenviable, her difficulty is made greater because of:

    1. her own incompetence viz the debacle with the with-holding tax in 2006.
    2. The legendary incompetence of Thais in general. Incompetence is the norm in Thailand, in fact it may be that the only thing they do really well, is do things so badly.

    One of the causes of this incompetence is. oddly enough, the Thai’s love of microphones. There are 3 things you should *never* give to a Thai:

    1. A nice shiny uniform, especially if it has meaningless ‘service’ ribbons and a nice badge with wings on it.
    2. A whistle, especially if also given a nice flashing red stick.
    3. A microphone.

    The last of these is the worst because it doesn’t even have to be their own microphone. If you stick a microphone in the face of a Thai, it triggers a flood of gibberish. The credibility of governments in Thailand has been repeatedly undermined by the compulsion to say something when a microphone comes into view of someone who thinks he should be important. It is like the legendary 15 minutes of fame (or in Thailand, a lifetime of ridicule).

    Thus we have ministers and others saying the very first thing that occurs to them, and in so many cases, it is ill-considered and just plain wrong or even completely fictitious. Thus ministers disagree with and fall over each other, bank officials give different versions of the same basic numbers, and everybody wonders why foreigners howl with laughter at the spectacle of yet another Thai making a complete fool of himself/herself.

    So don’t put any faith in Thais ever telling the truth, and don’t ever trust that they have a blue clue what they are talking about. Because another equally ‘qualified’ (or just plain garrulous and publicity-hungry) Thai, looking for their 15 minutes of fame/relevance will be sure to say something completely different.

    Being qualified to speak, being entitled to speak, and indeed actually knowing what they are speaking about: all these things disappear into the general fog when you stick a microphone in a Thai’s face and ask a question.

    How could it be otherwise on the Thai side of the Looking Glass? leopards and spots my brothers, leopards and spots.


  5. 5 chinesethai 18 September 2008 at 12:44 pm

    By injecting hundreds of billions after hundreds of billions, America can only temporarily suppress the problems but one can expect a bigger problem.

    It is time for America to drop nationalism and abide by the rule of “Free Trade” that they kept preaching other nations. America must be open for foreign takeover!

    You owe others so much that you can’t pay back. The solution is liquidate your assets and let the creditors take over your businesses.

  6. 6 absolutelybangkok 19 September 2008 at 5:10 am

    Noteworthy here:

    In 1997 the IMF basically ordered the shut-down of Thailand’s financial system. You have to radically clean up a rotten system, was the advise.

    Many parallels of what happens today in the U.S. But hey, don’t think about breaking up that superior financial system …

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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