Bankruptcy

Crisis Spreads; Russian Market Falls, then Closes

By J. Michael McBride

“Russian shares suffered their steepest one-day fall in more than a decade on Tuesday, losing up to 20 per cent, as a sharp slide in oil prices and difficult money market conditions triggered a rush to sell.

The heads of the Russian central bank, the finance ministry and the financial market regulator met on Tuesday night for an emergency discussion on ways to halt the crisis.

Earlier, trading had been suspended on both the Micex and RTS stock exchanges as investors ignored assurances by Russian officials and a cycle of distrust set in amid liquidity fears.

Margin calls forced domestic traders to liquidate positions and brokers pulled credit lines. At least one Moscow bank failed to meet payments.”

Here is a link to the entire article:
http://www.ft.com/cms/s/0/6ff9306c-83f1-11dd-bf00-000077b07658.html

Michael

Full post as published by Texas Lawyer Blog on September 17, 2008 (boomark / email).