FINX-THE FINANCIAL XPERTS December 18, 2008 Volume 1, Issue 1 a The Financial Digest be SD Inside this issue: ‘sub Prime criss ‘The Great Fall of Lehman ‘The Tala of IG Fannie Mae and Freddie Mac Indo-US Gil Nuclear Deal The Sub-Prime Crisis olen wth the ald ean wating olathe abled American ay of He. For thse needs home, butthere sa sal roblemhere These in sls donot have good ced tng Snceis me credits ot good enough no bank wlgvehim2 i hore er asthe ft the cances ofa ot data by hi ar high ut, before the ame candreomcan nce say tee eters secon Ameran ually robust haclistion Ic Letra brothers ho hs god cre ‘ating andi ing take on same amount of Se eet ire The second Aer the est Init lof mal orton nies them out home loans tol other Arn Teo rete a eee ‘Wshigher tered as the sub pre eee {hesub rehome loan market Aso by ging ee eae ata eeeeeeece a ee are ete ae eee a ete eee) tbe fected mc nde lend up aking seat rf Now shan oan rt espe what a re ee ee ee ee Ientarect, Non e's et tothe sub pre market Telntton ping oe ann he aire markt doesnot stop rere. doesnot wot forthe prndpaland hereto the sub pr ome loans be real, sothtitcanrepay soon tothe tank (he prine ede), which has hen theo. Read more on Page 2 > Indo-US Civil Nuclear Agreement ‘on oth October, 2008 the civ Nuclear agreement between Indie and the United States wi finaly be signed by ‘Mr. Pranab Muktarjee and Condoleza Rice. This wil rng an end three years of negotiations between the gover ‘ments, clearance fom various international nuclear watchdogs suchas the IAEA and the alte NSG. The bask ‘framework for this agreement was ont statement by indian Prime Minister Manmohan Singh and US. President ‘George W. Bush, under which Inia agreed to separateits cil and miltary nuclear facites and place cil facies under International Atomic Energy Agency (AEA) safeguards and, in exchange, the United Stats agreed to work ‘toward ful il Nuclear cooperation with India. Read more on Pages“ump dumpty ston a wel Humpty dampy ha as great fl Althe kings horses, and al the ings men, ould put amply together ga” ‘The Financial Digest The Sub Prime Crisis > continued tom tat Page ‘Tpeinstuton ging outioansin he subprime make does rt stop here t doesnot wale the propa and theintrest on the sub prime hme lane tobe pa tat ean ep loan ote bak (epi encer)rchhassentthe oan Section means converting nese home oars nto anlar, when rome to pays cata rate of tere These fan seaies ae then 01 bigs nvestrs. Ad ow ae these vesorsrepa? eterest andthe pa that repaid bythe subprime Borrowers trough equated mori nstalnens (ENS) ae passed onto these sttoal ves tor. Thelntason gringo the ub pine loan tates the money that gets by sling the fransecariesae passes on {othe barn ha taken tbe ban fran thereby repaying the ban The sub pinehomseloars were genout a fost ate rome loans. Wh anbwreasesnhomeloan ate They, deat beng cred unworthy nthe fs place]. Once more ane ore sbprine borrower started deauting parents to tention Inestors whe had bough he nan secures ore, lending to ge ates. The cin began wits he bursting ofthe United States ova bubble Slowng US economy, highnterest ‘ates ue rel estat pres, hignfation and igo tags togethered to afl instock marke growth tari, fb lose, lacko consumer spending, ava halo newbs ad feedosutes and deals, ub pine horneowners began 1 ‘etaulae they coun longeratforatopay lr Ds, Auge ot uc dts nundatdtese eta and bane, wpe ‘cut thet net worth Ther mortgngebacked secures were almost worthes areal eat res cashed Now burdened wth tonsct debt and ne mney to poytback the backof these ancl ene ichas Lehman broke eaing ote cre al The Great Fall of Lehman ow prophet ths sro rursery tyme sounds when we think abou the rat flo he might ehran brothers. Thetis tans were magnanimous, the word Watcnedn socks te great mogu ot nvestren bantng lke nose o cards, how sandsot investors loser har ered money, many many ere lest tha os andthe greatest stoown ner of rere since the great depression followed st But what triggered ts downal andthe subsequent barkupty Why wa Lerman baled cute ote than nsttution fachgthe sane cred cunch? Whatimpac does R haven tenia eon nut ne ay tay pute inthe round wal wonder” Rich, head Lehman brother i hi at pub comments Since Lehman feo bankruptcy prtetion." do otkow why we were the nly one that wasrot rescued” Akey quesfon that arses wranmany otherrancl nestor bee seme and Fede Mac ad Fare mea were balled ot depite fainginte same bos! a Lehman why wr lehman out? Aho hopero ardayrexcg lehman from woubes wales were ihn the frat dns (ary had even scundedeut hey shaeholdersforappotincaue ot he da gong throug) te plans were abandoned athe las rant, rom the ott, hough it was apparent hat Srl woul ny ee to take part ina takeover of he troubled nstutnf the US easy secretary Here Paulson, sansoned sme form gaan tee for eh bust balance sheet Palon tho the previous weekend promised fccbn (been) toxtare up there loan agencies Fred Mac and Fane Mae, es thought by et evering London tine o Mave retsed wo put more exper? ronay eke to sore up annvestrent bank rwovishave been even mae po aly sanstve or th US goverment to abe loner oni forehmanto te soqured by aforeignsank. eau oticashave argued hat Lehman's atuasonaierstrom ht ‘ean they haved tne to prepare, Secon, the bankas acess tothe borowng acy irodced by the Feral Reserve Her ear Steams cllapad The US athoie 3d been hoping an answer to errr woes ould be fd hat woul om" arcaysto buy he better performing pans ofthe barked 2group of sso vaso agree to carve off re more tone ats a stomach loses hat cul ave anurted to anestnated 3cbn Butt proved ough to persuade alnanks to sipporta aout nat wou require ther to takelosses nd Baia to potentially reap al herewarcs. The csussonshave ao been ‘ampere he fat hat theater Saks on Wal Stree ae eager to preserve cpt dung te cent rs ned of geen Involved na reste of Lan. lan Greenspan te for chan ofthe Federal Reserve athe goverment ou nat ‘onrue to tall lng nani mut. "eis very lata hiss an unauanabestustion nthe iancal mars" he =a "we soviet ty to protet every sing nstton. The adnay cso anal ranges has whner ad loses Buthow does th great Americana fect her na he effect here manifold The development hs aed lead 2 lossotneary Rs 2000 crores for ndan compares nich Lahranhigmade qty investments, Even sre realty developers ‘eel ea. IL Bane lle aroun R375 reer 30 Bank UKPa ol 5 mlloneurof eel bond of Ler rot ‘enue buyers inthe markt On sth Sept The Bombay Stock Exchange (SE) beret Sensex ly 72.46 point rd the ity fhe Nana Stock Exchange lo ppd below 00a ling 240 ports. Moreover, the tuning al of Wal Street con Lateran Bother could have mo conseuence forlnd'soutourchginduty global bakhgand fenc rajersteatign cat to um te comer and atop Cherttes rm going but.Volumes, Issue t Pages ‘Asst and nds leaders saythe specter cf ower even, jb oss and por Slay hkeslomlarge overs compe res many of utente ona contracts for western fnanciallante.The needa pact rbengfelth human ressurce managerient Many of the roubles france compan io operste captive BPO units inna chances are hat these ‘woud best down ets aready happening with Lhran others that npoys ome 2500 peoplein Mumbai for handing biotic work Tine aloe sh telwnts the veal Inpat oft landmarkeventon he nda economy an he eno rier worlsover. Farrow we know that company tat ures ck proportans ter sartng 3 sip saton rang rg, now no longer exits. "want to be very la. tate ful esponsiy forthe decors tht mae andr the atone ‘hat took sed onthe nora that we hd at he tne Fl nad of Lehman brothers tld congesions panel." el The Tale of AIG Perak -Hesemiatic ed” eran nterstional rau, (RG) war esr naan an thant eves les ntematoalmerance 7 lorganzation wih operations in more than 30 counties an ursictions AG companies serve commer tuto ana Intra cuter though ne mostextensve werd property aru andifensrance networks of ayer But the 3d week Seplenber just after the Lehman Brothers ld for barkuptiy Galo coud tay may on the het The ‘red cruneh i th get haere US witht foc, athe global ner eporteé 45. illon fourth oss lage beau of rte own tat exceeded any arly expectton. wary rte worst quarry eth company rasreporedintshistony, which ats back t 193 Alc shares ummeted (to $2.05)oncancens hat thecamsany woul ankrp The surat te 89 eaalanurer turer lito doubt when Standard & Poors and Moods invest Sesce cuts crediting ans these econ tetera o fore AV to porte than 4s bilan eater when the company ‘was aenty short cat soul aie rane by sling shares. Thesatout > ‘ed twas then whenafter Ac shares were vole whpsawedin the markt represantabestrom the ed ard US, Treasury Deparrentmet ts aris the att the nner deems by any "os age ofa. Subsequent the Fed outined ne me ere balou oF AC. "The Board determined hat, cuen creumstances, aude fare ofAXcould ado area rf: ALG sold company with over ‘nt ees of ancl mart rag ad la to aubtantal higher borrowing costs, redocednousehold wealth and mee ly west econome perfomance” te F's atest red The US. goverment ook contra of Ameran nteration 4 trlion in asets ‘coup nc nans8s bobo to prevent the bankruptcy ofthe ratios biggest sur and the wort ancl continued from first page ‘Thedealiebenghansed a3 mie tepmeneurng that nas neresengenery demande atest nthe most table manner Sone fits key festresare aos 1. Thesarernent oto hnderorterfer wind srclet programa forma paxposes 12. _USwathe nda nego wth the IAEA and SG foran inspect ful apply agreement 3+ Washington wil support New Deh dveep steal reserves of near fuel to gud gant future dcupton ef sph. 4 Incas of ruption US anna wii convene a roup offre spp counts to icude atone Rs, Fance andthe UKto pursue uoh eases to restore fl sip ‘Sot the countessare to fant nia trade between themselves the interes respective ndues nd consi 6 Inca andthe Us agree to vanstermucear mater non nucearmater equpmentand component 2. Any spec sonable material ansfered under the agreenent shal below enicheduranum, 5. Lewerhed uarium can be tansferred fr use a ulin reactor experentsand reactors forconverson fbn 9. Theambtof thedealinudes research, development dese, construction operation, maitenance anus of near reactors reactor experment ae decommission. 4, The USwilhae the sight tosekretumef ucerfueand technology but wl compensate forthe costs incued a2 ‘i, The USwilhave the sight tosekretumcf cer fueand echnolgy. nce of return Washington wl compensate ‘New Deliprompty forte ae mare ae there" and the costs ues a3 consequence schemovs 12. Both the counties to setup oh Comsteeornpementtion of he i naea agreement and development of turer noperaton sel 1. Theapreerent vans prior consent oreproces spent uel 14 Senate nuclear technology, rls teltes nemajr cic components cn be transfer after amendment to he ageerent 1: Inca estab anew national fact ciated to reprocesingsteguarded near tel une IAEA safeguards, ‘Apscttrom he above mentioned featues the das very Important because wth he NSC waver tht accompanies th ‘ett dates of pula pare gat ns have ended ghng nla avy ood epperty topo sl forms bepower witha apaiiesand soit has been ecogized ba court wth proven non eleraton past There ate any whe hve clined is deal becase of the folowing reasons 1 Resesons thatthe deal puts on nds tay rat programe 2. eetecton our thor srowme. 5: Manali surencer tothe Us because of fears of isla tight to esta Nclesr weapon and CMs Pages “TheNSG cearancehas now irety opened up business ‘opportunities worth Rs 20,000 “roresinthe next 15 years, The ‘nuctear dea wil also enable ‘ton of new capacity and help {ull the target of acing 63,000 ‘mw by 2050,"‘respons to thee conc Rha endy been tated bythe rules progranme anahtnoreference the weapons programme. Aso the totum programme wil gs on and vey ourtey nas he sovereign gto test ns in wl abs conthue toposes hat rit. conic impact: The del wis hoes jr acnomcmpet ‘urPrne Mists Mr. Manmsnan Singh haseven ss tht eal propel nc’s energy ator one high whch were ‘ler nat imaginable. he ndan steph the SG waver and nd’ eeyinto the ete ruc ub wi have sleneant economic spinoffs es hope ht ns aevecprart ‘wlth county ghtecmnoogy ade and buses inthe geen jectry. ile he beefs ar expected to reach beyond the power sector tothe and pamelor, rather vantage cf the deat wl prose an opportunity ‘erin manutasers to ga tectlogealenperaein he supply of pres ana corponent forthe nace Powe Pans e The Financial Xperts Finx launches the first issue of Its Quarterly enewsletter, THE FINANCIAL DIGEST. The newsletter will aim to bridge the gap between theory and practical at CBS. It is an Endeavour to keep CCsites abreast of the latest happenings from around the world ‘Articles written by: Mehak Kharbanda, Nitima Malhotra, Raghvendra Singh Gaur, Skiti Lakhmani Newsletter Designed by: Vafbhav Arora ‘According to ndusry body li nthe and longterm has Components The bled automablepartsinduty would be the mam benearyt tie "The NSGcsrncenasnow dey nest yet, Thence dea lan nae aon of re {apacky ad help fl tbe target fading 53,000 My 20307" ssc. ‘These developments shou bert rte a power companies sich as NTC, od Larsen &Toubo, Tata Power sed Relance Power. Otercompaies that have radtnalynet been this ls may aaa make ara in theta gen ‘hemagatuse of he Busnes potent Aeceny, LMT cairn AN. Nak si thal Matis company ready Yoistoray Intobuldng nics reactorsbynvestng aba. oo croresfrafrgig unk hove en verre wh Nuces Power Corporation Ae, Tata Power recently sie wa planning 2miniri lon iextrient i rucea energy, ter ‘wor tought vertres. The agement with the US skaly to geerateorers wort more thant ilo for cm ies such 5 LS 2nd BEL, ‘ents to Sectors other than the Eryn adn to power, ther igh ecology sectors sich a er conus, advance manufacurng precsionenghneaing defense equipment advanced and pect cher lc, EO ‘erwtorment tecioogy, pace, automaton aa abot, ard pra Whe sme sectors be helped by removal of resritonson impor ofa technoiogy ems and teceogy, thers wl get an eppertunt op the poterl create by ruclear rade. Acording to ase.r fica fam Larsen Tbr, he Spur of acts weuld be eperenceainehe phamaceutcalanaT pace Overaythe mood aga upbeat amon enghesig companies Fomhaving tet tout loematop tne to overees companies thir care sete ra st to se 3 Harpnceate beers contrat tanks to he Nuclear Suppers Gros decison tat ae overtumeda three decagelongbanon nia bupng material elated ruler energy. now muh ine wil these Benefits actus Be resize? Hower otal ont cul take more ‘fre to four earsas varied suey suchas tania estance ale regulator and softy es are spelt cut lati snes cpabiy is developed, klsexpetes that te rlear agreement wth he US alow nat generate 40,00, ‘egawattsot rice power by 202, The waver and th ndo-US cla deal ha ed lob uct pomer majors auch (General ect Westinghouse Areva and Rosy, hove rdaurched aks for manufacturing an supply of nile power ‘aupment whic aso mating paral negotiators wth the sate oud Kilear Power Crporatin(NPCL), the monopoly ruses power generator nd for sippy of nla fel and tchlog or ensing power plnts and upcoming prjets ‘cd NPIL has Gena postive response ienyng the andy menoned four eeign reactor manufacturers Went Inghause Gece Company (APr000 eres of eats) CEtach(ABWRreactor sere) Areva (0m Eutpean pres tzereactor) and url's stom energy gency Rosato (WER 00"eactors) —#raong te ronrunners foe projects based on “subi” of tecvicalparametesfor placement of res, Already, Russians reeling abut ‘wo i000 We (regawatt ect gn wate reacorst Koodankulae nar Nady and planfor an aden uit could specced. ‘vantage forthe Unites States: del aay spies a ge ad ae reltionshp an same the casein he nsoUS Nuclear deal Out of he total mmber reactor beng manufactured eventone of herenctrs te mporeattom he US ‘hen woul ea to the reston of 2009 obra rene bllonin te exports tat why Ge ue SCN spoN rept vente with Hac for the Incan market an hasreceny een reported tobe opento ca partners Asory Team Svaibhay Arora organising Team Meh Kraroanda 3: Raghvendra Singh Gaur Interested in writing aces for eee