CBS Investment

Exchange crises are a kind of reaction of the securities market on the excessive “swelling” of fictitious capital. One such crisis occurred in October 1987, when stock prices fell sharply on the stock markets of the capitalist countries. Thus, in comparison with the maximum level of August 25,1987, in October 19, 1987, they fell on the New York Stock Exchange at 36%, Tokyo – more than 20%, the Paris and London markets – at 35-40%, while the stock exchanges in Frankfurt-am-Main, Sydney and Hong Kong – even at 45-50%. Thus, the crisis was one of the strongest in the history of stock market crises. It turned out on “classical terms”, i.e. it occurred at the height of the economic recovery and lead to a reduction in fictitious capital, for example of U.S. corporations, at 550 billion dollars.

American financial and insurance group American International Group, Inc. (AIG) is selling its banking unit in Russia – “AIG Bank”, is reported in the press release of the company on June 29.

Banque PSA Finance SA, registered in June 2008 as the financial branch of French auto concern PSA Peugeot Citroen, is going to buy the above mentioned bank. German Deutsche Bank will be the financial consultant from the part of AIG, whereas the Russian unit of CMS will consult the French side.

Other terms of the transaction have not yet been disclosed.