RI's Baring back to business soon<\/p>\n
JAKARTA (JP): PT Baring Securities Indonesia (BSI), the
\nIndonesian division of the collapsed British merchant bank
\nBarings, is likely to resume trading on the Jakarta Stock
\nExchange (JSX) tomorrow.<\/p>\n
John Marshall, BSI's president, said yesterday that he expects
\nthe Indonesian arm of the British investment bank to resume full
\ntrading on Thursday.<\/p>\n
\"Technically, there is no problem to resume trading but we
\nhave to get approval from the JSX and the Capital Market
\nSupervisory Agency,\" Marshall told The Jakarta Post.<\/p>\n
BSI, a major securities company in Indonesia, suspended
\ntrading last week in the wake of the derivatives dealing scandal
\ninvolving its London-based principal company.<\/p>\n
The British bank was reported to have incurred financial
\nlosses of about US$1.4 billion from derivatives trading carried
\nout by its business arm in Singapore.<\/p>\n
Achmad Daniri, a JSX executive, said yesterday that BSI should
\nfirst settle all the transactions it made last week before it
\nfully resumes trading.<\/p>\n
\"Baring wants to resume trading tomorrow but we ask them to
\nfirst settle all last week's transactions,\" Daniri told the Post.<\/p>\n
Marshall said that BSI, which last year topped the list of the
\nmost active securities companies on the JSX, faced no
\ndifficulties at all to meet the JSX requirement.<\/p>\n
\"Everything about the settlement is OK. The transactions
\ncarried out last week have been all settled through KDEI, the
\nclearing and settlement agency,\" he said.<\/p>\n
Internationale Nederlanden Groep (ING), a Dutch financial
\nservices giant, agreed early this week to take over a majority
\nstake in Barings, Britain's oldest merchant bank, for $1.075
\nbillion.<\/p>\n
Marshall said that the change in the majority ownership of the
\nBritish bank would not have a negative effect to the BSI
\nmanagement.<\/p>\n
\"There will be no layoffs. There is no reason for that,\" he
\nsaid, adding that the change in ownership of Barings Plc. will
\nnot change the BSI business strategy. \"We, instead, expect that
\nthe entry of ING will not only further improve our financial
\nstructure but also our business networks,\" he added.<\/p>\n
BSI is 80 percent owned by Barings and 20 percent by an
\nIndonesian partner.<\/p>\n
Losses<\/p>\n
ING chairman Aad Jacobs told the press Monday that losses from
\nthe collapsed merchant bank Barings stand at 860 million pounds
\n($1.38 billion).<\/p>\n
Jacobs revised figures given earlier in the day by a solicitor
\nfor the bank's administrators who had said Barings' losses
\ntotaled 916 million pounds ($1.466 billion). No reason was given
\nfor the difference in figures.<\/p>\n
The ING chairman also said he intended to return all assets
\ncurrently frozen and to reimburse 100 percent of liabilities.<\/p>\n
\"But we won't accept unknown liabilities coming after today,\"
\nhe said, AFP reported.<\/p>\n
The British High Court approved late Monday administrator
\nErnst and Young's plan to sell Barings to the Dutch banking group
\nING.<\/p>\n
Britain's oldest merchant bank collapsed in spectacular
\nfashion on Feb. 26 after running up massive losses as a result of
\nbad derivatives deals blamed on a 28-year-old trader in
\nSingapore, who is now in police custody in Germany.<\/p>\n
The potential liability of the open positions was the major
\nobstacle to the Bank of England's efforts to rescue 233-year-old
\nBarings. On Feb. 26, the administrators had estimated the losses
\nas around $900 million.(hen)<\/p>",
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