Further financial strains cannot be ruled out: IMF
Within 24 hours of US investment banker Lehman Brothers filing the largest bankruptcy in the American history, International Monetary Fund said the financial crisis may continue at least in the short run.
By PTI |
WASHINGTON: Within 24 hours of US investment banker Lehman Brothers filing the largest bankruptcy in the American history, International Monetary Fund said the financial crisis may continue at least in the short run.
"The speed and scale of these events have added to short term uncertainties and further significant financial strains cannot be ruled out," IMF's first deputy managing director John Lipsky said, responding to media inquiries.
The statement of IMF comes in the wake of 158-year-old Lehman Brothers filing for Chapter 11 bankruptcy protection, after losing around USD 60 billion in the sinking real-estate market, and another investment bank Merrill Lynch bought over by Bank of America for USD 50 billion.
The world's largest insurer American International Group (AIG) is also facing financial crisis. The Dow Jones industrial average fell more than 4 per cent since the day the stock market reopened after the September 11 attacks. Indian stock markets lost 469.54 points on account of the carnage in the Wall Street.
Lipsky said the present consolidation is necessary for restoring the efficacy of the sector. "The weekends developments should be seen in the context of a financial sector restructuring and consolidation. This is a necessary condition for restoring the sector's effectiveness," he said.
Yesterday in Cairo, Egypt, the head of IMF Dominique Strauss-Kahn had said the consequences on the financial sector are not over.
"The speed and scale of these events have added to short term uncertainties and further significant financial strains cannot be ruled out," IMF's first deputy managing director John Lipsky said, responding to media inquiries.
The statement of IMF comes in the wake of 158-year-old Lehman Brothers filing for Chapter 11 bankruptcy protection, after losing around USD 60 billion in the sinking real-estate market, and another investment bank Merrill Lynch bought over by Bank of America for USD 50 billion.
The world's largest insurer American International Group (AIG) is also facing financial crisis. The Dow Jones industrial average fell more than 4 per cent since the day the stock market reopened after the September 11 attacks. Indian stock markets lost 469.54 points on account of the carnage in the Wall Street.
Lipsky said the present consolidation is necessary for restoring the efficacy of the sector. "The weekends developments should be seen in the context of a financial sector restructuring and consolidation. This is a necessary condition for restoring the sector's effectiveness," he said.
Yesterday in Cairo, Egypt, the head of IMF Dominique Strauss-Kahn had said the consequences on the financial sector are not over.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
