Lehman Brothers and Merrill Lynch deal are major shock to usa business market. And the way usa market fall down is continue it may have major global impacts.
AIG, which was ranked among biggest financial companies in the world has lost more than 90 per cent of its market capitalisation since 2006 and it shares plunged more than 61 per cent on Monday in stock exchanges of America.
USA financial crisis has once again has raised many questions for credit based economy system, also banks are suspecting that they might not get back their money anymore which has forced the doubling of money market rate in America from 3.33 per cent to 6.44 per cent.
The meltdown in America do not ensure financial stability in near future. RBI in india has also announced certain steps towards this issue. It will augment its actions of sell and purchases of foreign currencies as warranted in the domestic foreign exchange market. Besides, to ensure supply of foreign currency RBI has announced reduction of ceiling of interest rates on foreign currency.