Wednesday, September 17, 2008

US Recession

Last night I was able to watch the news in Channel 2. I was surprised to find out that Lehman Brothers (one of the largest financial institution in the world) have gone bankrupt and AIG (American International Group) is in the rocks as well.

BDO, Metrobank and Sun Life International have few stocks in Lehman Brothers but that doesn't mean that their business are affected. According to Bangko Sentral ng Pilipinas, the companies that make an investment in Lehman Brothers are capable to survive since majority of the stocks are here in Manila.

AIG is the parent company of Philam Life which is one of the biggest insurance companies here in Manila. The president of Philam Life was interviewed and made an assurance that the company is stable since their capital and stocks are different and independent from AIGs (Philam have stable clients which are the big names here in Manila).

Early this morning, I was having a chat with my friend whose working in SG. She told me that Merrill Lynch (a leading financial management) decided to sell it's assets. If the economic crisis in the US continues, she believes that investors will soon turned to SG for building businesses.

Due to these events, stock markets around the world are affected.

One thing's for sure, this will cause a chain reaction to countries who depends on US.


Gracie said...

fret not, AIG will do fine, esp now that they're 'nationalized'. the US government will never let the world's largest insurance company get off the region of the largest insurance will be a big blow to their economy. AIG just needs to sell off their assets and slowly repay their debts (with steep interest rates), but i'm sure they'll do fine. the feds are interfering to prevent further damage. kaya nga Bank of America bought ML to save it from totally closing down. let's just pray they recover quicker than expected.

Unknown said...

Glad to hear that Gracie :)

I can't imagine na ang mga biggest financial institutions are going thorugh this ordeal. Kakagulat.