When the U.S. catches a cold, Mexico catches pneumonia, but when the U.S. catches pnumonia…

It may not be so bad…

(Ken Parks, Dow Jones Newswire):

Mexico’s banks have no meaningful exposure to U.S. investment bank Lehman Brothers Holdings Inc. (LEH), which filed for Chapter 11 bankruptcy protection on Monday, according to a government official.

“Lehman really never was a strong counterparty figure in the (Mexican banking) system,” said an official at the National Banking and Securities Commission, or CNBV, who asked not to be named. “It doesn’t represent a risk to the system or ( financial) intermediaries.”

In the case of local institutions owned by foreign banks, any exposure to Lehman Brothers is probably at the parent-company level, the official added.

The Bank of Mexico, which has a hand in regulating the financial system, declined to comment on the matter.

Lehman filed for protection Monday under Chapter 11 of the U.S. Bankruptcy Code in New York, reporting $613 billion in debts.

Mexico’s banking system is largely in the hands of international investors following an acquisition binge in the early part of the decade….

The banking industry’s first-half net profit was nearly unchanged at 30.16 billion pesos ($2.82 billion) compared to the same period of 2007 as rising loan-loss provisions and costs offset higher revenues, according to CNBV data.