More than US$10 billion in losses
"Temasek Selling Merrill Lynch Half or total of 87m shares have been sold off at a loss, according to US recorded filings. By Seah Chiang Nee Jul 24, 2008 Temasek Holdings has sold off half its ill-timed investment in Merrill Lynch - or about 87m shares, according to a mutual funds report on institutional trades on US stocks. The online report, MFFAIRS (Mutual Fund Facts About Individual Stocks), reported it sold off 86,949,594 shares (50%), leaving a current holdings of 86,949,594 shares (50%), according to the filings made public.... At that price Temasek would have suffered a loss of $17 a share - or a total loss of about US$1.48b for the 87mil shares.... Huge paper losses The disposal leaves Temasek Holdings and the Government Investment Corporation (GIC) still holding substantial parts of big troubled Western banks. Its remaining investments in UBS (Switzerland), Citigroup, Barclays and Merrill Lynch - at an original cost of US$21.88b - have declined on by some 47 percent in value. That is a paper loss of US$10.28b. However, Minister Mentor Lee Kuan Yew had said these investments were made as a long-term strategy of 30 years...." The above was extracted from www.littlespeck.com Murphy's Law working? Things that can go wrong will go wrong? When I first posted on the acquisition of these top international banks, I was a little optimistic that this was a god sent golden opportunity to be a big player in the internation financial market. I was also expecting that enough groundworks were put into it and the risk factor of this turning bad has been factored in. And should the investment becomes a bad deal, the losses are limited and we are protected from digging a big hole for our reserves. I am feeling very depressed now. It was a huge investment, an opportunistic one as someone has called it, but betting with such a big sum of money cannot be taken lightly. Didn't the financial experts cover their arses just in case it goes like what we are seeing? In stocks we always talk of trading in short term but often we are caught and short term trading turns out to be a bad long term investment that could eventually melt away. This is going to be a really long term investment now.