800 more chips on the table

800 chips of $1m each are on the Merill Lynch table. Temasek had earlier bought US$4.4 bil worth of Merrill Lynch shares and with the additional $800 mil through exercising its option, it now holds near to 10% of Merrill Lynch. Would this large holding qualify Temasek to have a say and the management of the company? Or we are so trusting to let the Merrill Lynch managers to run the show at will and believing that they will manage the company for our interest? What are the safeguards to protect our investments? It is incredulous to put in so much money and did not have a say in the company. Today paper reported that 'Temasek is currently sitting on paper losses of US$1.2 bil from its investments in Merrill Lynch and Barclays.' As long term investments, the returns will come in in a matter of time. As for concerns on the long term time frame and lack of disclosure on grounds of secrecy, investments in such high profile institutions cannot go unnoticed. These organisations are subject to public scrutiny in their own countries and any mismanagement or poor showing will be exposed quite quickly as in this case. They may hide and delay as much as they like, but they can't hide forever or for too long. The truth will be out sooner than expected.


Anonymous said...

"As long term investments, the returns will come in in a matter of time."

The above statement would qualify as one of your myths, Redbean. I am surprised you had the cheek to even print that statement. There are no returns to speak of, long or short term, if the investment is a dud. Think Global Crossing and Enron. Who's to say Merril Lynch would also not go down the same path, in which case, bye bye reserves and bye bye cpf.

Temasek and GIC should never have dabbled in them in the first place, not with the people's money anyway. It is fine if LKY and his goons want to bet using their own money but not with money coming from the national purse.

redbean said...

when you read an article, you cannot just read one line or one para. the long term investment and return in time to come is a general assumption. it is just like wait, one day the world will come to an end.

in the meantime, things will happen. the truth will reveal itself. read the para after i posted that sentence i quote.

Matilah_Singapura said...

> As for concerns on the long term time frame and lack of disclosure on grounds of secrecy, investments in such high profile institutions cannot go unnoticed.[...]
The truth will be out sooner than expected. <

1) I wouldn't be money on what you say.

2) Whether or not the "truth" comes out, won't make a difference to Temasek.

Temasek has modeled itself off the British East India Company—the original OWNER of Singapore, and LARGEST GLC the world has ever known. At their peak the British East India Company owned or controlled 25% of the planet.

redbean said...

don't expect temasel to disclose more than it is necessary. but if merrill lynch or ubs is going down, it is going to be front page news with all the details, including our losses on it.

Anonymous said...

The World Bank has asked SWFs like Singapore's for a USD500,000 sum, to feed some starving nations. As this is peanuts compared to what we are capable of, let's give them double to make everyone happy.

Matilah_Singapura said...

I don't think S'pore or any other country should "jump" at the behest of a global fascist organisation like the IMF or the World Bank.

It is not S'pore role as a sovereign nation to help the starving of the world, or to stamp out evil or any sort of "grand plan".

People—on an individual VOLUNTARY basis- who want to help the world's poor can do so DIRECTLY by walking their talk and getting involved.

redbean said...

i agree, no need to jump when imf ask. but, what's the problem of throwing a couple of peanuts away? any above average singaporean could do that.

Anonymous said...

> a global fascist organisation like
> the IMF or the World Bank

Huh, what?

Anonymous said...

We have F1s, YOlympics, Rock events, UBS etc... for a just small 0.5B donation we can create more buzz to impress the rich and famous, why not?

Matilah_Singapura said...

Lee Kuan Yew in a rare moment of wisdom—the times where I agree with him—has occasionally, and rightfully played DOWN S'pore's "1st world image".

He knows if you harp on that too much, sooner or later some "do-gooder" global NGO, Non-Profit Organisation or Fascist Old-Boys Network (IMF, World Bank, UN) motherfucker will come and ask you for money to give to a bunch or worthless bums who can't or won't get their own shit together: i.e. The Entitlement Mentality which essentially re-states the socialist edict: "From each according to his ability, to each according to his need", thus establishing "need" as a value (at the extreme a "virtue") by which standards of "morality"are judged.

In other word, if anyone "needs" something, they can rightfully make a CLAIM on someone else to fulfill that need.

You think it is "moral" to help others? Well, you do it. Set an example. Then you can talk. Otherwise, shut the fuck up.

Anonymous said...

You think the fellow that goes round hugging old farts, kissing babies is "moral"? He is only doing it for image and political convenience, you arse hole!

Matilah_Singapura said...

anon 1013:

The IMF and World Bank (IFI - International financial Institutions) were created at a UN conference, under the guise of providing a "stable" global financial framework.

The IMF and World Bank (and the UN and US) are used by rich cuntries to impose western-style capitalism onto poorer cuntries.

Inasmuch as I am in favour of free-wheeling, rivalrous, laissez faire capitalism, I am totally against FORCING capitalism onto countries.

The very basis of TRUE capitalism is that it is founded on individual rights and private property, which means one can only deal with others through VOLUNTARY association and consent.

When there is no VOLUNTARY consent or association, then the system becomes FASCIST in nature, and results in involuntary servitude... and of course corruption, collusion, embezzlement and abuses of power by whover the "ruling elites" are.