Normally, we have to have three sets of action plans; immediate or short-term, medium-term and longterm. Traditionally for us, short-term meant one year, medium-term five years, and long-term perspective planning meant 10-15 years. But after listening to Dr Bhatkar, the feeling is that shortterm is one year or less, medium-term is one-and-a-half years and long-term is two to two-and-a-half years.
A second instance is related to Lehman Brothers and its role as a counterparty in myriad bilaterally settled over-the-counter (OTC) derivatives transactions. Lehman’s default and the doubts it raised about the viability of the few remaining investment dealers struck at the heart of both the funding and the OTC derivatives market.