- The world's banks are owed $2.65 billion in outstanding
loans by WorldCom, the beleaguered US telecoms company, which is believed
to have accumulated further debts of around $30 billion in bonds and commercial
paper.
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- Analysts believe that Industrial Bank of Japan, now known
as Mizuho International, Mellon Bank, Bank of America and Royal Bank of
Canada are among the larger lenders to WorldCom, although the list is likely
to include 60 of the world's biggest banks.
-
- JP Morgan Chase and Citigroup, which recently helped
WorldCom to secure $1.5 billion in additional funding, are viewed as the
largest counterparts, although insiders claimed this was not the case.
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- Few of the banks would comment on the situation yesterday.
A spokesman for Royal Bank of Canada said: "We do not comment on our
exposure to individual clients." However, one insider suggested that
the final amount was "way, way less than $50m".
-
- JP Morgan Chase said: "Our WorldCom exposure will
have no material impact on earnings and is very small." Mellon, Bank
of America and Citigroup all declined to comment.
-
- Tom King, a banker at Schroder Salomon Smith Barney who
specialises in telecoms corporate finance, is viewed in the City as one
of WorldCom's leading advisers. He was travelling yesterday and unavailable
for comment.
-
- Analysts admitted, however, that it was difficult to
assess the final bill to individual banks because they may have spread
their initial risk among competitors by syndicating out credit lines and
loans to WorldCom.
-
- Abbey National, which immediately announced provisions
of £95m to Enron, the collapsed energy giant, said yesterday that
it had no material exposure to WorldCom. Barclays declined to provide details,
as did Royal Bank of Scotland. Lloyds TSB admitted it had an exposure but
said it was not significant.
-
- Several insurance groups have an exposure to WorldCom
because they have invested in euro bonds issued by the group. Allianz said
its investments were "below $200m" while Aegon, the Dutch insurer,
said it had an exposure of $200m.
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- © Copyright of Telegraph Group Limited 2002.
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- http://www.telegraph.co.uk
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