Chidambaram's views on financial crisis unreal: JD(S)

THIRUVANANTHAPURAM: Janata Dal-S (Surendra Mohan) faction on Wednesday said Union Finance Minister P Chidambaram's statement that the American financial sector turmoil would not have any serious fallout on India was nothing to do with the reality.
  
The US crisis had already had its fallout on the Indian banks and insurance companies that had pumped funds into American firms like Lehman Holdings and AIG, JD (S) national general secretary Dr Verghese George said in a statement here.
  
There had been reports that the US sub prime crisis had resulted in a huge loss to Indian commercial banks. Besides, it had weakened mutual funds and IT companies that thrived on works outsourced by American companies, he said.
   
It was interesting that who had earlier argued for the government's withdrawal from the financial sector were now pressing for strong government intervention to tide over the crisis, the JD (S) leader said.
   
What was happening in the US and Europe was an eye-opener to those who had advocated that concepts like social banking had become outdated, George added.