And then ..hey presto.. here its was.. SCB is feeling the heat..the Hedge is down...every one of himself (institutionally that is!) now...Minister Paw-Zi suddenly feeling a bit of amnesia..and finding difficult to recall the CPC-SCB Gardening mess...well least the Hedging stuff....
Read between the lines...."This means that we have more than sufficient funds to cover our obligations,come what may." Chilling...
3 comments:
"come what may" ...its CJ.Sarath..thats whats coming...
Merrill Lynch warns oil prices could fall to $25...http://www.ft.com/cms/s/0/3beefae2-c1f7-11dd-a350-000077b07658.html
The greedy, bonus driven banks mis-sold a hedge that was not a zero cost collar at all, with a nice limit for banks and unlimited exposure for CPC.
What Central Bank should do now is to heavily fine the Standard Chartered consortium for breaching Central Bank regulations as they regularly do in India, and the hedges should be cancelled as they are illegal.
Standard Chartered will then have to make payment of the full amount to whoever they sold the hedge to overseas... they would then feel the heat that Sri Lanka and its citizens are feeling now..
We can then actually look forward to $25 oil....
thanks to Standard Chartered, we may soon pay more for the hedge than for oil :-)
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