Banks count Lehman exposure
(17 September 2008 – Australia) The Australian banks have been quick to look over their books to discover their exposure to fallen investment bank, Lehman Brothers.
While the fall of Lehman Brothers holding company has had a dramatic impact in markets around the world, the real impact to the Australian banks is relatively small.
The major banks in Australia all released brief statements on the issue to clarify the potential exposure to the latest victim of the credit crunch.
The Commonwealth Bank advised that its exposure to the Lehman group of companies is less than A$150 million. However, CBA said that the bank has no exposure to the holding company.
National Australia Bank said its exposure to the Lehman group of companies is less than A$100 million, including any exposure held in conduits. While not considered material, the bank has yet to specify direct exposure to the holding company.
Westpac disclosed that its exposure to the Lehman Group of companies is less than A$10 million. Westpac said that this did not include any loans.
ANZ advised that its total exposure to the Lehman group of companies is approximately US$120m comprised of US$28m exposure to Lehman Brothers Holdings and US$92m to Lehman subsidiaries.
St George, Bendigo and Adelaide Bank, and Babcock and Brown have said that they have no exposure to Lehman Brothers while Macquarie Group said its exposure was negligible.
In filing for bankruptcy with the US Securities and Exchange Commission (SEC), Lehman listed ANZ and NAB as the only Australian businesses with exposure.
ANZ was listed in Lehman's filing as having US$69 million (A$85.3 million) worth of exposures as at July 2 via two bank loans. NAB was listed with exposures of US$28.3 million via two letters of credit.
The major banks in Australia all released brief statements on the issue to clarify the potential exposure to the latest victim of the credit crunch.
The Commonwealth Bank advised that its exposure to the Lehman group of companies is less than A$150 million. However, CBA said that the bank has no exposure to the holding company.
National Australia Bank said its exposure to the Lehman group of companies is less than A$100 million, including any exposure held in conduits. While not considered material, the bank has yet to specify direct exposure to the holding company.
Westpac disclosed that its exposure to the Lehman Group of companies is less than A$10 million. Westpac said that this did not include any loans.
ANZ advised that its total exposure to the Lehman group of companies is approximately US$120m comprised of US$28m exposure to Lehman Brothers Holdings and US$92m to Lehman subsidiaries.
St George, Bendigo and Adelaide Bank, and Babcock and Brown have said that they have no exposure to Lehman Brothers while Macquarie Group said its exposure was negligible.
In filing for bankruptcy with the US Securities and Exchange Commission (SEC), Lehman listed ANZ and NAB as the only Australian businesses with exposure.
ANZ was listed in Lehman's filing as having US$69 million (A$85.3 million) worth of exposures as at July 2 via two bank loans. NAB was listed with exposures of US$28.3 million via two letters of credit.
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