Tan Kin Lian's Blog: Singapore's investments in global banks

Monday, November 24, 2008

Singapore's investments in global banks

I received a report from an analyst.

Temasek and GIC invested a total of SGD 36.7 billion in the global banks, namely Barclays, UBS, Merrill Lynch and Citigroup. The invstment in Barclays was made 18 months ago. The others was made nearly 12 months ago.

The value of these investments dropped by slightly more than 50%, or about SGD 18.5 billion. During the same period, the global stockmarket dropped by about the same extent. (Earlier, I thought that the global banks performed worse that the market, but it does not seem to be the case).

20 comments:

Anonymous said...: I can share the blog owner concerns as well

I was just beginning to worry if these unfortunate losses will see the end of their managers' careers. Corporate and Political.

Then i kick myself. What can I possibly be thinking??; November 24, 2008 7:33 PM
Anonymous said...: I believe ur analyst report will have the investment figures and purchased prices...maybe u can kindly present them out...sure to be jaw-dropping...eg. citi was bought at us$27...now at us$3.77....just < 1 year ago...& their beautiful argument "LONG TERM INVESTMENT"...blar.....lucky US gov came in to rescue Citi...else will be another ZERO for Singaporean Tax $$$....from billions); November 24, 2008 8:43 PM
Donaldson Tan said...: Don't forget that your CPF monies is lent to to Temesak and GIC for their investment activities. In return, you get 2.5% interest. However, this interest rate cannot be sustained if Temesak and GIC continue to sustain big losses. We need a good president to oversee Temesak and GIC.; November 24, 2008 8:50 PM
Anonymous said...: And our PM have to take a pay cut... poor thing, his salary got cut to "only" $3.04mil a year now.; November 24, 2008 9:33 PM
Anonymous said...: You haven't added in investments like ABC Learning which is supposed to diversify risk away from the banks. A 25% pay cut is not enough; they should all be fired.; November 24, 2008 10:05 PM
Anonymous said...: Didn't our wise old man say these investments are for the long term ie 20 to 30 years?

And maybe after that it will not only recover all the losses but also multiply many times over.

Sorry for those who are not that young, definitely not old man, to be able to see the results.

Of course no one, whether employee or doing own business, can afford this reasoning to apply to one's performance or loss.

Only Old Man can.; November 24, 2008 10:23 PM
Anonymous said...: how can they be fired?
They must sit there and find new way to recover..
All in all, we trust Bush regime too much.
Now is to ensure proper fix, so this country can remain financial hub of the region.
But how to ensure trust when so many people are drawing FD from one bank to another?

Good ness me; November 24, 2008 10:33 PM
Anonymous said...: i told you the stories of Buying Hotel in London...by two singaporean investor.

One is hotelier another is from TaMaSteak. The 1st buyer checked in quietly, for 2 days, he talked to staffs, sat around all the bar, outlet and walk around observing all the features. No one knew he had intention to buy.

2nd buyer..secretary organise and all the itenary was fixed and arranged. He was pickup by the Hotel -ROll ROyce, He was shown all the best features and no complains.

Mr.1st asked for 20% discount.
Mr. 2nd negotiate and the hotel quoted 20% more than the intended price.

Mr. 1st did not buy.
Mr 2nd report get approval...

What you say?; November 24, 2008 10:40 PM
Anonymous said...: WHo is the current President?

You means he is doing his Job?; November 24, 2008 10:42 PM
Anonymous said...: "Anonymous Anonymous said...

You haven't added in investments like ABC Learning which is supposed to diversify risk away from the banks. A 25% pay cut is not enough; they should all be fired.

10:05 PM"

I thought for the briefest of a moment someone actually wrote THEY WOULD ALL BE FIRED.

Atlas! I realise its MY MIND PLAYING A TRICK ON ME; November 24, 2008 10:44 PM
Anonymous said...: had we all not learnt the lesson from NICK Lesson scandal before?

We need a Tsunami warning system, a organisation always asking questions ....; November 24, 2008 10:51 PM
Anonymous said...: READ this SCAREY men!!!

25 USD to 1 EURO soon.Good ness me. Your 18.5 bil could left...18.5 mil in proportional ratio.

http://moneycentral.msn.com/community/message/......854519; November 24, 2008 10:59 PM
Anonymous said...: LATEST.
CITI to be broken out...Investors all losing out...; November 24, 2008 11:16 PM
Anonymous said...: If the amt is divided by 3 mil, how much each person get?; November 24, 2008 11:31 PM
Anonymous said...: "Anonymous Anonymous said...

If the amt is divided by 3 mil, how much each person get?

11:31 PM"

I think you are confused.

3 million. there's no each. that's what ONE of us gets here on this Little Red Dot; November 25, 2008 12:47 AM
Tan Kin Lian said...: 11:31 AM asked, "If the loss of SGD 18.5 billion is divided by 3.5 million Singaporeans, how much will each person get?"

The answer is SGD 5,300 per person. Sorry, this money is already lost. (But, maybe it will recover?); November 25, 2008 6:59 AM
Anonymous said...: UBS, Citi ahares fell more than 50%: you were right.

But GIC did not buy ord shares. They bght convertible bonds. Value of such bonds fall less than equity because they pay interest.

But latest reports are that GIC's Citi con bonds may not pay any more interest. So bonds may be now be worth nothing.

Note the conversion prices into UBS and Citi shares are way above existing shre prices.; November 25, 2008 12:28 PM
Anonymous said...: "So bonds may be now be worth nothing."

Dont worry too much

They will surely worth something.

Someone somewhere always say so.; November 25, 2008 5:02 PM
Anonymous said...: Hello all.

What they will tell you next is

"It's an honest mistake. Let's move on"

Hahaha. Haven't we heard enough. How many "honest mistake" do we have to endure????

John; November 27, 2008 6:02 PM
Anonymous said...: "Loss of S$18.5 billion? No problem. Relaxz man,
The money was invested from the accumulated profit of previous years lah. You didn't lose any money, don't grumble, ye lowly stupid and greedy citizens of singapore. "
- An application of a brilliant accounting trick used by a brilliant government servant

REX; November 29, 2008 8:42 AM