Thursday, September 18, 2008

BOC holds Lehman-related bonds, loans of $128.82 mln

Bank of China , the country's largest foreign exchange lender, said on Wednesday it had total exposure to failed U.S. investment bank Lehman Brothers of 128.82 million U.S. dollars.

The exposure, consisting of Lehman-related bonds of 75.62 million U.S. dollars and loans of 53.2 million U.S. dollars, accounted for 0.01 percent of the lender's total assets and 0.19 percent of its net assets, the bank said in a statement on its website.

It said the loss would not cause serious impact to its financial status. It was still assessing possible losses and would pay close attention to new developments. It would also set aside relevant allowances timely according to cautious principles.

After Lehman Brothers filed for bankruptcy on Monday, BOC shares dropped by the daily 10 percent limit on Tuesday and tumbled a further 6.31 percent on Wednesday in the yuan-denominated market.


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