ICICI Bank's exposure to Bernard Madoff

sridhga

Well-Known Member
#1
Can anyone please tell if ICICI bank is exposed to Bernard Madoff who lost USD 50Billion? I want to know because ICICI invested in the US markets through its UK arm. Can anybody provide information relating to this?
 
#2
that's insider information, banks hide their "secret losses" to save their face. if icicibank's price is going down, then assume there's something wrong. no one will give such "money making" information to public (one could short icicibank, no?)
 
U

uasish

Guest
#3
Some smart banks of US lost their pants & undergarments too,hence indian banks (being dumb) are also bound to loose.
This is a such a logic that as donkeys have two fore & two hind legs hence as cow also has the same then the cow is a donkey.

Actually we are all fools we cant see the donkey ,which is apparently looking like a cow.

ICICI Bk,in a decade has become one of the biggest pvt bk in the country.SBI has 5000000 % backing of ALL CENTRAL GOVT A/C ,disbursements,etc etc etc .Without much of those BACKING a bank of our country has become a force to reckon with .The entire Home-Loan & many many other Loan portfolio was being aggressively persued & indians are TAUGHT by these pvt Bks.
The cards in our wallets ,the ATMs round the corner ,just visualize 10 yrs back,still we are spookey.
 
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kkseal

Well-Known Member
#4
And all this in an environment where banks in India have virtually no instruments to leverage their assets/balance sheets (we are at the other end of the spectrum viz-a-viz the US/European banks) Everybody plays by the same banal rules with no scope for innovation. So credit derivatives, when they do come in, will separate the men from the boys & in that enviroment i'm sure the pvt banks will outperform.

Regards
 

pkjha30

Well-Known Member
#5
Some smart banks of US lost their pants & undergarments too,hence indian banks (being dumb) are also bound to loose.
This is a such a logic that as donkeys have two fore & two hind legs hence as cow also has the same then the cow is a donkey.

Actually we are all fools we cant see the donkey ,which is apparently looking like a cow.

ICICI Bk,in a decade has become one of the biggest pvt bk in the country.SBI has 5000000 % backing of ALL CENTRAL GOVT A/C ,disbursements,etc etc etc .Without much of those BACKING a bank of our country has become a force to reckon with .The entire Home-Loan & many many other Loan portfolio was being aggressively persued & indians are TAUGHT by these pvt Bks.
The cards in our wallets ,the ATMs round the corner ,just visualize 10 yrs back,still we are spookey.
It is not a question of logic but sentiments.

I remember one story and it goes like this:

One Pandit bought a goat from Haat >He was going to his village when three thugs saw and conspired to take goat from the pundit. They positioned themselves at three different points at the roadside.

When Pandit came into sight , first thug said to him.." Namaskar Pandit ji, Why are you carrying a fox on your shoulder"

Pandit says.." don't be a fool , it is a goat, don't you see?"

Thug replies.." No I don't see, but as you say."

He leaves.

On the way after some time second thug is waiting for pandit.
After seeing Pandit, he exclaims.."Why panditji, you are carrying a fox, it will bite you."
Pandit say..." No I was told it is a goat and it certainly looks like a goat. Why do you say it is a fox?"

Thug says.."I don't know what they told you a haat , but it is certainly a fox, not a goat. look at its cunning eyes and foxy ways"

Pandit looked at goat and he was having doubt..." But eyes look like that of goat."

Thug says..." Well , if you see goat, who am I to say it is a fox. But ask someone else , if you don't believe me. I am going, don't say I did not warn you. Its your risk, your life and your money after all"

Thug leaves.

Pandit starts thinking that yes , it has some characteristics of fox, like four legs, two ears some furs ....He doubts that someone made fool of him by selling fox instead of goat. How can two person be wrong. let me ask another one.

After some time third thug is waiting near a tree. He sees pandit and shouts..."What a fool you are to carry a fox. Run before it bites you.."

Pandit throws that goat away and runs towards his village thanking Thug Aadmi

Third thug catches goat and all three thugs later join to have a feast.

Looks like we are being made fool of, logic does not matter.

pk:)
 
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kkseal

Well-Known Member
#6
Good for traders :) (who incidentally leverage their 'current assets' day in & day out)

What i meant was financial outperformance (without the sentiment factor), requiring greater sophistication & efficiency than in the current 'cash only' environment.

Regards
 

kkseal

Well-Known Member
#7
In 2007, RBS (Royal Bank of Scotland) bought ABN Amro Bank for $100B.

...

Current market cap of out-performers of 2007 ...
- Citibank $22.5bn
- Morgan Stanley $10.5bn
- Goldman Sachs $21bn
- Merrill Lynch $12.3bn
- Deutsche Bank $13bn
- Barclays $12.7bn
Weren't these also the market outperformers in 2007?
Isn't the current mess to a very large extent the result of unregulated CDS markets?

Anyway, don't want to get into the age-old TA vs FA debate (which is what this seems to be veering to) For me both are important & have their own roles.

And i'm not suggesting unregulated anything (neither markets nor accounting).

Regards
 

Flock

Well-Known Member
#8
Just my opinion;

It is worrying that one bank stock has taken a far greater hit than the others and we always feel that the market knows something more than we do .... I would like to look at it in another perspective:

Somewhere around Dec 07 when experts on CNBC where talking about Sensex at 28000, etc, one person PC, our X - FM when asked said "I dont think retail investers are investing at these prices, as far as the FIIs are concerned let them buy, no problems."

Then came that crash of Jan and sometime when the Nifty had hit 5000 and CNBC experts where wondering why DIIs are not buying at these absurdly cheap prices, and how the strong Indian growth, demand and other fundamentals make that 28000 target possible after this slight bull market decline, one expert (forgot the name) when asked about his take on the state of things said:

"Look, I can give you two answers here one that you want to hear and are hearing about the strong growth and other bla bla, or the one which I think is my belief based on fundamentals .... Fact of the matter is that our friend the US is going into a recession, and things may turn out to be so bad that you may find one or two major banks going under. I wont be surprised if we lose a third of the index from these levels. Why should DIIs try to prop up this market, it is not their job. if this market has to go down it will swallow what ever prop ups you put into it and still go down."

At that time I thought that maybe this guy was one of those doomsday predictors. Today with Nifty at around 3000 and the big list of banks gone in the water in the US, I am not so sure about my assessment about that guy.:D

Point I am trying to make is that always there are people who are in the know of things and our ex FM and PM are probably two of the best when it comes to the economy - they will know ki 'Bhains kitne pani me hain' :)

Even if they wont bother too much about one or two co-op banks cracking up, or Satyam buying some companies, they are bound to have a hawk eye watch over the big banks in both pvt and public sectors. So maybe there will be some mark to market losses but nothing like the problems the US banks are facing.

As for the markets, maybe the FIIs have decided to slowly start buying the monkeys once again. Afterall investment is about buying the monkey when nobody wants to buy it and selling it when everybody wants it.
 
#9
dose anybody see something wrong or missing in decision of change of icici ceo to chanda k. from kamath i try to say something is wrong or went wrong way, so change caption of icici:confused:
 

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