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Ramon Magsaysay Award Foundation. Briefing on NGO Investments September 30, 2008 | Ramon Magsaysay Center. THE LIQUIDITY CRISIS. Mr. Joey Bermudez Chair, Maybridge Former President, Chinatrust. External events. Domestic events.
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Ramon Magsaysay Award Foundation Briefing on NGO Investments September 30, 2008 | Ramon Magsaysay Center THE LIQUIDITY CRISIS Mr. Joey Bermudez Chair, Maybridge Former President, Chinatrust
External events Domestic events Sub-prime crisis, graduating into a full-blown housing crisis Falling asset prices Financial losses Shattered confidence Constricted liquidity, lower purchasing and investing power Vanishing liquidity Bursting asset bubbles Net outflow of FDI and hot money, lower Fil-Am demand for property, weaker global demand Systemic wealth destruction Full economic crisis Runaway commodity prices
Dow Jones Industrial Average Sept 2007 Jan 2008 March 2008 June 2008 Sept 2008
Philippine Stock Exchange Index Sept 2007 Jan 2008 March 2008 June 2008 Sept 2008
PRICES OF ROP 32 Sept 2007 Jan 2008 March 2008 June 2008 Sept 2008
A Major Local Bank Peso Funds
A Major Local Bank Foreign Currency Funds
FIRM WRITE-DOWNS CAPITAL RAISED Citigroup Inc. 55.1 49.1Merrill Lynch & Co. 51.8 29.9UBS AG 44.2 28.0HSBC Holdings Plc 27.4 3.9Wachovia Corporation 22.7 11.0Bank of America Corp. 21.2 20.7IKB Deutsche Industriebank AG 15.1 12.4Washington Mutual Inc. 14.8 12.1Morgan Stanley 14.4 5.6Royal Bank of Scotland Group Plc 14.3 23.4JPMorgan Chase & Co. 14.3 9.5Deutsche Bank AG 10.6 3.2Credit Suisse Group AG 10.4 2.7Wells Fargo & Company 10.0 4.0Barclays Plc 9.8 18.0Credit Agricole S.A. 9.0 8.7Lehman Brothers Holdings Inc.* 8.2 13.9
FIRM WRITE-DOWN CAPITAL RAISED Fortis 7.3 7.1Canadian Imperial Bank of Commerce 7.1 2.8Bayerische Landesbank 7.1 0.0HBOS Plc 6.8 7.3ING Groep N.V. 6.8 4.7Societe Generale 6.7 9.6Mizuho Financial Group Inc. 5.9 0.0National City Corp. 5.4 8.9Natixis* 5.4 6.6Indymac Bancorp Inc 4.9 0.0Landesbank Baden-Wurttemberg 4.8 0.0Lloyds TSB Group Plc 4.8 4.8WestLB AG 4.7 7.4Dresdner Bank AG 4.0 0.0BNP Paribas 3.9 0.0Goldman Sachs Group Inc. 3.8 0.6E*TRADE Financial Corp. 3.6 2.4Rabobank 3.6 0.0Nomura Holdings Inc. 3.3 1.2Bear Stearns Companies Inc. 3.2 0.0
The Anatomy of Liquidity More! More! Leveraging De-leveraging Loss! Loss! Panic! Panic! Spending and Investing Power Debt Capital Liquidity