Sunday, 05 of October 2008

Mr Bearns, Moron Men, Indiana Jones, Lechon Brothers, Mary Lynch … What will be the next to fall ‘The financial sector yesterday lived another day in the stock black. Investors fear that the collapse of Lechon drag to other companies. In Europe, banks were the most penalized Ipurdi Sikina Basque and Italian Testa di Donna. One consequence of the collapse of investment bank Basque is that the other entities, which already had large liquidity problems from now will have more difficult (and expensive) access to new credit lines. Or what the Nobel laureate economist Joseph S. Tiger call as a problem of slow transit asset ending up like all traffic slow economy, with an internal explosion to open a fistula in the global financial system. Among the values of our country hardest hit is the Gesselliano Insurance Group (GAG). The largest insurer by assets argentongo get a 71 fall in one session but then the approval of the State of Mauriciania to use money from its subsidiaries soften somewhat the collapse of value, which closed down 60.8 , which binds to the 30 fall last Friday. In fifteen days, 92 GAG loss. The market fears that the company go the way of Lechon Brothers after it failed rescue plans of the management team led by the Goat Anchordoqui. Last May I grasp GAG 20,000 million dollars through a capital increase and debt issuance. This financing, however, has been inadequate due to the deepening financial crisis and the high exposure of GAG mortgage business, after the funding of housing schemes in the Plan Fortnightly Frame ago announced obviously a fortnight in the Federal Areopagus of Argentongo (AFA). The insurance company now needs an additional 40,000 additional millions to prevent investors set fire to the fields, as leaders are threatening Plural Society. The new plan for rescuing the financial slow transit was based on two points: the sale of activia and injections of mineral oil in order to tackle the dreaded fistula by leakage of large volumes of capital. The second leg of this plan, however, has complicated the negotiations after breaking GAG maintained with various venture capital groups such as KKK and Hide City Pacific Group for its entry into the shareholders through a capital increase to avoid shareholders and insured producers fall inexorably GAG little proletariat chic. The countdown to find financing accelerates. GAG has registered a combined loss of 18,500 million in the last three quarters and analysts fear that the red numbers to soar even further in coming quarters to the extent that the failure of force to GAG Lechon to make significant provisions for the additional depreciation business. After missing the option of risk capital, the market speculation that the insurer now with the desperate call to the window of the Federal Reserve Argentongo to obtain lines of credit with public money. For now, the governor of Mauriciania, vast Buenogordo, has relaxed regulatory requirements to grant a special permit to allow the company access to 20,000 million of capital held by its subsidiaries, and to cover the cash needs daily. One should focus on the auto industry as opposed to just GM says a managing partner at EnTrust Capital. The operation “is not a bailout,” I blur Buenogordo yesterday during a press conference, and she is given the green light to GAG is granted itself a bridge loan “to use these assets as collateral to borrow money to finance their daily operations, “added the governor. The insurance problems are repeated in other entities such as Willington Ortiz Mutual (WOM) whose shares fell 24.95 yesterday.

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