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Should I Start Pulling My Money Out Of Bdo?


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should I?

 

I don't want to start a bank run or anything but people have been saying that the Lehman collapse is one thing to be mindful of especially when dealing with BDO.

 

as of the moment though, i'm still staying put, because I read somewhere that Lehman (or at least the investment bank) was being bought by Barclay's of London so it won't be a total collapse.

 

But I want to hear what the experts say..

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BDO's total exposure to Lehman is $134million topping 6 other RP banks...that's peanuts to Taipan H. Sy, but reason to make him jittery IF his market base becomes more nervous than he is and over-reacts. Panic is not the order of the day, but BSP must step in to stave off any more fears in the stability of the banking system.

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  • 4 weeks later...
I just opened a BDO account today. Their Lehman exposure is not that significant to bring them down. A BDO banker also told me that they have released some extra income to cover for their Lehman exposure.

 

Don't panic as it will just make matters worse.

 

 

Thousands of investors did not panic, and they get heavily hit.

Be steadfast and update your knowledge about the bank's liquidity.

Off course the BDO guy will give you positive feedbacks, but is he truly aware of what's happening?

 

Just a thought to share......

Edited by hugoboss28
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ang pagkakabasa ko nito sa balita lugi na daw sila nyan ang previous gain ata nila is 4 billion something now its only down to 1 billion coz of the market crunch. pero still hehehe

 

Banco de Oro reported a net profit of Php1.06B for the first 9 months of the year (down 78% year-on-year) implying a loss of Php1.3B for 3Q alone as a result of provisions made in 3Q for its exposure to Lehman via credit linked notes.

 

Earlier, BDO disclosed that it had made Php3.8B worth of provisions against their USD130M exposure. The provision partially came from re-allocation of excess reserves, and the balance charged through the P&L.

 

Outside of trading losses and resulting provisions, BDO's underlying businesss seems alright. Loan growth was at 35% (vs the banking industry's 22% growth) funded by a similar 32% increase in deposits. Despite the losses, BDO reported total Capital Adequacy Ratio of 13.7%, comfortably above the 10% minimum.

 

But again....who knows what else is lurking out there.

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