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Money Market, Forex and General News - 03-08-2009

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MONEY MARKET

Money Market opened at 12.50 percent .Market remained tight on Monday as it topped at 13.90 percent and closed at the same level. Six month KIBOR stayed at 12 percent.

FOREX

Inter bank opened at 83.30 & 83.40.Market surpassed barrier of 83.50 and topped at 83.52 while made a bottom at 83.35.Later on rupee gained some ground and closed at 83.33 & 83.38.

GENERAL NEWS

Citigroup would give United States government a thirty four percent stake in the equity as part of federal bailout of the third largest American bank. Government is going to be a major stakeholder of Citi group. Investors have agreed to swap some $32.8 billion of preferred securities for common stock and the government
agreed to swap $25 billion. Citigroup called for the bailouts after suffering massive credit losses and write downs due to financial crisis which sent tremors to Wall Street and toppled Citi from US largest bank to third largest. Government came to rescue Citi and has injected around $45 billion from TARP (Troubled Asset Relief
Program) and agreed to share losses on $300 billion of troubled assets. Citi is further pondering to shed its consumer finance, insurance and toxic assets.

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posted @ 6:22 PM,

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