What impact will bankrupt ICICI Bank have on the US stock market?”
Economic Offences Wing of Mumbai Police and SEBI find no truth in alleged conspiracy that brokers had tried to bring down bank stocks By Deeptiman Tiwary Posted On Thursday, January 08, 2009 at 02:53:40 AM Two-and-a-half months after ICICI Bank lodged a complaint with the Economic Offences Wing (EOW) of Mumbai Police against certain brokers alleging a conspiracy to bring down its stocks by spreading rumours about the bank’s weak financial health, the agency has found no truth in the bank’s allegation. In fact, the Security and Exchange Board of India (SEBI), which was also looking into the matter, has observed that there is no evidence of such rumours being spread for pecuniary gain. During the stock market meltdown in September-October, there were a lot of rumours warning investors about ICICI Bank going bankrupt. The bank’s shares were falling consistently following which it lodged a complaint with EOW against a bear cartel of high-profile brokers at the BSE. Investigations by the EO
Hopefully it won’t have a huge impact. At this point, I think and hope that the market has come to expect that some businesses will fail. Hopefully no one single bankruptcy will trigger a major stock market disaster. Still, if this bankruptcy leads to a domino effect with several others filing for bankruptcy, it could have a catastrophic effect on the market. At this point, no one knows for sure what the market will do, so we all have to hope that the worst of this recession is behind us. We need to start focusing on rebuilding our economy. Sources: It is my opinion.
