Subprime crisis

Noncredit worthy customers Imprudent practices

Effects Collapse of large investment banks in US

Lehman Brothers Goldman Sachs Morgan Stanley Bear Stearns Merrill Lynch

Effects (contd)

Downslide of stock markets across the world

Decline of crude oil prices Massive job cuts in US Slowdown in real estate

Bailout $700 bn by Federal Reserve Given in installments of $250 bn, $100 bn and another

$350 bn To reassure global investors

Impact on India Job cuts Stock market crash Downfall of IT companies Textile companies Postponement of expansion plans Real estate slowdown Banking and insurance

Impact (cont) M&A Placements Liquidity Depreciating rupee

Measures taken

Cut in CRR rates Relaxation on ECB norms P-Notes

Conclusion

Strict financial regulations is the need of the hour

THANK YOU

Presented by Arun Thomas

Meera GALBERTIAN INSTITUTE OF MANAGEMENT COCHIN, KERALA,

INDIA