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The evolving international financial architecture

by member governments and to identify publicly those that complied with the standards. While some progress was made, namely the establishment of the IMF’s Special Data Dissemination Standards (SDDS) to help countries better participate in international capital markets, much still remained at the planning stage. As the peso crisis receded from the headlines, and with Mexico making a surprisingly quick recovery, the G-7 and the IMF were content with making “minor repairs” – leaving fundamental reforms to the international financial system for another day.2 However

in The Asian financial crisis

futures trading venture. Mayer Lehman was appointed to the Cotton Exchange's first board of directors. Lehman Brothers' commodities futures trading business grew to include other goods, and the firm also helped to set up the Coffee Exchange and the Petroleum Exchange. This was followed in the 1880s and 1890s by Lehman Brothers' development of the Southern railroad system, just as JP Morgan and Kuhn Loeb led the financing of the Northern railways. Lehman observed the trend of issuing bonds to raise capital, and expanded its commodities business to

in Lehman Brothers
Why China survived the financial crisis

China in both its external trade account and external capital account, nevertheless, like the Great Wall, China not only remained conspicuously insulated from a region-wide financial meltdown of unprecedented severity, but the mighty dynamo fueling its economy has missed only a few beats during the crisis and since.1 China’s ability to sustain a strong gross domestic product (GDP) growth performance of 8.8 per cent in 1997 and 7.8 per cent in 1998 and over 8.0 per cent in 1999,2 continued success in attracting foreign direct investment (FDI),3 in running healthy

in The Asian financial crisis
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trust at risk’. 2 Fuld also claimed that they were in the final stages of raising capital with the sale of a majority stake in their investment management division, whilst retaining the Lehman and the Neuberger Berman brands. A potential deal with a Korean sovereign wealth fund, the Korean Investment Corporation, which would have provided Lehman Brothers with $5bn, had fallen through in August 2008. Negotiations had then taken place with the Korean Development Fund (KDF). It was thought that the fact that negotiations had taken place with KIC would not affect the

in Lehman Brothers
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Volume 3 Management, mergers and fraud 1987–1993

The final volume of this detailed history of Ferranti covers the last seven years of its operating existence, starting with the 1987 merger with ISC and culminating in a humiliating demise consequent upon GEC’s 1993 decision to withdraw its bid for what by then was an unprofitable rump. Extensive attention is paid to the way in which ISC evolved under James Guerin’s stewardship, providing insights into the shady world of international covert arms dealing. While in 1987 Ferranti purchased what was regarded as a highly profitable defence electronics business, by 1989 it was apparent that ISC’s net worth was marginal, creating an accounting hole in what by then was Ferranti International from which it never recovered, in spite of highly imaginative strategies enacted by a new chief executive, Eugene Anderson. The book provides detailed insights into international mergers, corporate governance issues and defence electronics that highlight the dangers associated with competing in one of the fastest-moving industries of that era.

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Commission, Miller provided more of the background to ‘Armageddon’. On 15 September 2008, Lehman was party to over 10,000 derivatives contracts relating to about 1.7 million transactions, and a major participant in hundreds of substantial real estate and loan transactions. To a limited extent, Barclays' purchase of Lehman's North American Capital Markets business to BarCap for $1.75bn plus $250m. in cash for its trading assets valued at $72bn and trading liabilities worth $68bn, within five days of the beginning of bankruptcy proceedings, helped. Miller described the sale

in Lehman Brothers

. They also began to offer corporate financial services to businesses, such as the private placement of securities issuances or assistance with mergers and acquisitions. Investment banks encouraged larger corporations to raise capital through bond issuances, rather than through loans from commercial banks. These changes continued throughout the 1980s, when in 1987, the Federal Reserve first allowed commercial banks to undertake a limited amount of underwriting of corporate securities. The limits were further relaxed in the 1990s. ‘Finally, Citicorp's 1998 acquisition

in Lehman Brothers
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Crisis, reform and recovery

The Asian financial crisis 2 Thailand: crisis, reform and recovery During the period of economic growth, we were too complacent. In good times we forgot many important truths and neglected many important tasks; we opened up our economy, but our stated plans to pursue discipline were not followed up; we attracted massive flows of cheap foreign capital, which we did not always spend or invest with enough prudence . . . we did not examine the fundamentals of our politics and governance or tackle issues such as bureaucratic inefficiency, lack of transparency and lack

in The Asian financial crisis
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Issues, debates and an overview of the crisis

to less than US$15 billion by the third week of November. Moreover, the sharp depreciation of the won not only greatly reduced Korea’s competitive edge, but also exacerbated its credit crunch problem in the international capital markets.9 This crunch in turn caused a currency crash and a liquidity crisis in an economy with unhedged and short-term foreign liabilities. Since the Korean economy is the third largest in Asia, the fall of the won implied a real depreciation that negatively affected the competitive position of the other countries in the region. Indeed

in The Asian financial crisis
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January to September 2008

The annual report made a good start to the year, many observers concluded. It was followed by the first quarter report, published on 17 March 2008. Their press release reported a net income of $489m for the first quarter, ending on 29 February, which was 57 per cent lower than the $1.15bn for first quarter of 2007. The press release also highlighted record client activity in their capital markets businesses, record net revenues in investment management, and that Lehman ranked second in global M&A transactions for the first two months of 2008. The company maintained

in Lehman Brothers