Merrill Lynch compensates Temasek US$2.5b

While we were all speculating on how much Temasek has lost in its bank forays, it is now reported that Merrill Lynch is compensating Temasek a sum of US$2.5b. This is about the amount Temasek has lost on paper at this point in time. So due diligence and contigency measures were built into the purchase. And if similar terms were included in the other purchases, then things are not that dire. And this must be expected from the professional managers at Temasek.


Mockingbird said...

Temasek is putting this US$2.5b back and pumping an additional US$900m into Merrill Lynch (ML) to increase its stake in ML. Sounds like a no-brainer to me.

Temasek confirms Merrill Lynch stake.

Chua Chin Leng aka redbean said...

they must have done their homework, and these big banks are very good catch. better than some teenyweeny asean banks with their political liabilities.

if the homework found these banks still fundamentally sound, it is a good bet. it is risky, else they would not be so desperate to come to us. it is a big transformation and we should demand for a say since we are a major shareholder, if not the biggest.

it is kind of a stupid to be the biggest shareholder without any representation.

Anonymous said...

What about other investors of Merrill Lynch? Were they similarly compensated?

Chua Chin Leng aka redbean said...

different investors go in under different terms depending on when and how much they put in. some want to put in also cannot.