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Aside from Banco de Oro (BDO), Metrobank, and the Rizal Commercial Banking Corporation (RCBC), the Development Bank of the Philippines (DBP), Standard Chartered Bank, United Coconut Planters Bank (UCPB) and Bank of Commerce admitted to having placed investments with Lehman Brothers.

 

The total exposure of all seven banks was placed at $386 million, and all seven banks reiterated though that the amount is equivalent to less than one percent of their total assets.

 

"Targets for the year remain on track, exposure below 1%... [We] have $44.5 billion in actual capital," DBP President and CEO Rey David said.

 

However, Senator Edgardo Angara, chairman of the Senate Committee on Banks, Financial Institutions and Currencies wants to check also if the banks have other investments in failed institutions other than Lehman.

 

Philamlife, meanwhile, was also made to update the Senate on a possible change of ownership soon.

 

Its beleaguered mother company AIG is now 80% owned by the US government after receiving an $85 billion loan and is currently considering disposing some of its assets.

 

But Philamlife said there is nothing final yet. They confirmed though that the Yuchengco group is among the interested parties.

 

"What they [Yuchengcos] do is not really up to us. I mean, they have expressed interest like others who have also expressed interest but that is a decision that will be made by AIG," Philamlife President Jose Cuisia said.

 

 

State pension fund GSIS, meanwhile, was a no show at the Senate inquiry, but Angara said they are not off the hook yet.

 

He said it is imperative for GSIS to disclose the details of their investments since billions of employee's pensions are at stake.

 

"GSIS has $1b investible fund, but we're not sure where... susulatan natin sila (we'll write them)," Angara said.

 

The GSIS, through Chief Legal Counsel Atty. Estrella Elamparo, meanwhile clarified that they have already placed $600 million of their investible funds on investments, and they assured that none of it was placed with Lehman nor any other failed institutions, and they are ready to provide the Senate with the necessary documents and reports.

 

The government pension fund admitted though that some of the money was placed with local fund managers like Metrobank and BDO.

 

The Committee on Banks though will have to wait for further developments in the US before they call for another public hearing.

 

US lawmakers have yet to give their approval to the US Treasury's $700 billion bailout proposal, which is expected to restore confidence in the market. Zen Hernandez, ABS-CBN News