Subprime Crisis Spreads Across Regions and Financial Sectors

London, UK - 21 August 2007, 10:41 GMT

Dear ATCA Colleagues

[Please note that the views presented by individual contributors are not necessarily representative of the views of ATCA, which is neutral. ATCA conducts collective Socratic dialogue on global opportunities and threats.]

European Regional Banks Wobble

Sachsen Landesbank announced that the German association of savings banks was making Euro 17.3 billion (USD 23.3 billion) available to the Saxony state bank to cover an affiliate that was suddenly unable to provide the credit it had pledged.

[CONTINUES] [ATCA Membership]

Hervé de Carmoy is European Vice-Chairman of the Trilateral Commission since 2004 and has served as Chairman of the French Group of the Commission since 1989. He is presently Chairman of Almatis (formerly Alcoa Specialty Chemicals), a majority-owned company by Rhône Group LLC. He has been a Partner of the Rhône Group LLC in New York and Paris from 1998 to 2004. He is a recipient of The President of France's Chevalier de la Légion d'Honneur. Previously, M. de Carmoy was Chairman of the Banque Industrielle Mobilière et Privée (BIMP) and Advisor to the Chairman of HR Finances in Paris. Educated at l'Institut d'Études Politiques in Paris and at Cornell University in the United States, he began his career at the Chase Manhattan Bank in 1963 and became its Director for Europe in 1973. After joining Midland Bank in 1978, M. de Carmoy became Director and Chief Executive International, London and Paris, a position he held until 1988. He was then Chief Executive of Société Générale de Belgique in Brussels until February 1991.

Monsieur de Carmoy is a Member of the Executive Committee of "France Active" (Micro-Credit in France) since 1995 and Member of the executive Committee of Planet Finance (International Micro-Credit) since 1998. He has also been a Trilateral Commission task force author on Restoring Growth in the Debt-Laden Third World (1987, with Martin Feldstein and Koei Narusawa). He has authored "La Banque du XXI ème siècle" (1995 - Odile Jacob) and "Conduire le changement" (1998 - Odile Jacob). He has also been Professor of International Business Strategy at the "Institut d'Études Politiques" Paris until 2001. He writes:

Dear DK and Colleagues

Re: Role of Large Financial Institutions in Fuelling Crisis

We all agree that the difficulties in the markets are not a butterfly flap on a yak's ear! The rescue of Sachsen LB in Germany provides an opportunity to analyse more precisely one of the roots of the present situation.

[CONTINUES] [ATCA Membership]

Hervé de Carmoy


We are grateful to:

. Dr Jim Walker, Chief Economist, CLSA, based in Hong Kong for "China Chaos and Subprime Butterfly;"
. Ashutosh Sheshabalaya, CEO, India-Advisory, based in Brussels, EU, and Bassilly, Belgium, for "India turns History Upside Down;"
. John Elkington, Chief Entrepreneur, SustainAbility, based in London, UK, and returning from India, for "Mother Convulsion - India's Third Liberation;"
. Stephen Lendman, based in Chicago, Illinois, USA, for "Slow Motion Train Wreck" via Ashok Khosla, Chairman, Development Alternatives, New Delhi, India;
. The ATCA Editorial Team based in Canary Wharf, London, UK, for "Market Convulsions;"

. Dr Harald Malmgren, CEO, Malmgren Global, based in Washington, DC, USA for "Federal Reserve's Changed Focus;"
. Bill Emmott, Director, UK-Japan 21st Century Group, based in London and Somerset, UK, for "Japan's Strong Yen;"
. Dr Harald Malmgren, CEO, Malmgren Global, based in Washington, DC, USA for "The Asymmetric Loss of Trust and Chain Reaction;"
. The ATCA Editorial Team, based in Canary Wharf, London, UK, for "Public Inquisition of Credit Rating Agencies may Accelerate Downturn;"
. Dr George Feiger, President and CEO, Contango Capital Advisors, based in Berkeley, California, USA, for "Watch out for Dramatic Winners;"
. The ATCA Editorial Team, based in Canary Wharf, London, UK, for "Systemic Risk & Sectoral Meltdown: Heightened Correlation and Deleveraging;"
. Rudi Bogni, Chairman, Medinvest, and Director, Old Mutual, from Basel, Switzerland, for, "Non-Stop Central Banks' Intervention;"
. Dr Ravi Batra, Professor of Economics, Southern Methodist University, Dallas, Texas, USA, for, "Towards a Global Economic Crisis?;"
. Aurora Carlson, Founder, Open One Center, based on the West Coast, Sweden, for "The Coming Storm of Change;"
. The ATCA Editorial Team, based in Canary Wharf, London, UK, for "Large Quake hits Quants as Computer-Driven Quantitative Hedge Funds Short-Circuit;"

. Dr Harald Malmgren, CEO, Malmgren Global, based in Washington, DC, USA for "Prolonged Credit Market Correction Ahead;"
. Prof Dr Norbert Walter, Chief Economist, Deutsche Bank Group, based in Frankfurt, Germany, for "Economic Consequences of The Sub-Prime Crisis;"
. Anthony Whitehouse based in Coppet and Geneva, Switzerland, for "Regulators, Hedge Fund Lending and Cross-Selling;"
. The ATCA Editorial Team, based in Canary Wharf, London, UK, for "Perfect Storm: Credit Freeze and Distress Selling by Hedge Funds;"
. Dr George Feiger, based in Berkeley, California, USA, for "Two Faces of the Same Coin;"
. The ATCA Editorial Team, based in Canary Wharf, London, for "Contagion and Systemic Risk? ECB Injects Record Euro 95bn post Major Disturbance;"
. The ATCA Editorial Team, for "Flight to Quality as Markets finally Appreciate Risk;"
. Robert McNally, Chairman, London Chamber of Commerce Property and Construction Group, for "Erosion of Commercial Real Estate as a Solid Asset Class;"
. Alexander Hoare, CEO, C Hoare and Co, Private Bankers, based in the City of London, for "Destructive Creativity, Leverage and The Derivatives Market;" and
. Dr Harald Malmgren, CEO, Malmgren Global, based in Washington, DC, for "The Fear of Central Bankers -- Flight from Illiquidity, Derivatives and Heightened Risk of Contagion;"

in response to, "Are the Currency Markets Warning that there is Trouble Ahead? The Precipitous Decline of the US Dollar and its Impact on the World."

We look forward to your further thoughts, observations and views. Thank you.

Best wishes

For and on behalf of DK Matai, Chairman, Asymmetric Threats Contingency Alliance (ATCA)

ATCA: The Asymmetric Threats Contingency Alliance is a philanthropic expert initiative founded in 2001 to resolve complex global challenges through collective Socratic dialogue and joint executive action to build a wisdom based global economy. Adhering to the doctrine of non-violence, ATCA addresses asymmetric threats and social opportunities arising from climate chaos and the environment; radical poverty and microfinance; geo-politics and energy; organised crime & extremism; advanced technologies -- bio, info, nano, robo & AI; demographic skews and resource shortages; pandemics; financial systems and systemic risk; as well as transhumanism and ethics. Present membership of ATCA is by invitation only and has over 5,000 distinguished members from over 120 countries: including 1,000 Parliamentarians; 1,500 Chairmen and CEOs of corporations; 1,000 Heads of NGOs; 750 Directors at Academic Centres of Excellence; 500 Inventors and Original thinkers; as well as 250 Editors-in-Chief of major media.

The views presented by individual contributors are not necessarily representative of the views of ATCA, which is neutral. Please do not forward or use the material circulated without permission and full attribution.

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