Takeovers and mergers in the business world is not something new. All the sops have been developed for donkey years and any banker handling a takeover or merger would not have to sweat the small stuff to get this done effectively without compromising the interest of the taking over party. All liabilities of the other party would be on the table and any liabilities to be taken over would be clearly spelt out, no hidden liabilities, and if any, would not be the responsibility of the taking over party. This is elementary.
When DBS India was ordered to take over LVB, non voluntary, it has all the rights to refuse unless all the liabilities are taken care of by the Indian govt. There is no reason for DBS India to want to volunteer to take over a failed bank and to assume all its liabilities, known and unknown, including crimes committed by its management. DBS India does not have to do national service for the India in saving failed banks and customers. I am sure DBS India would have absolved itself of all unknown liabilities. With so many legal experts in their payroll, so many takeover and merger experts in the bank, this basic fiduciary duty must have been taken care of before accepting the deal to protect the bank from unseen losses. Or did they not? Then why not? It cannot be right?
What had happened after the announcement and after paying $460m, we are seeing a long queue of creditors lining up to take DBS India to court and to pay up for the debt and misconduct and crimes of LVB. And DBS India did not say no, none of its business but is seen engaging the claimants as if it is LVB and it has taken ownership of LVB's misconduct and crimes. Can this be true? Would Singaporeans be interested in this commitment? Any question in Parliament by the govt or the opposition MPs on this? Or is this less important than pets and dogs and dog poo?
Did DBS India make it a pre condition with the Indian govt that it should not be liable for LVB's liabilities and crimes if it is to take over the dying bank and pay a ransom for it? It cannot be that DBS India would be so happy to assume all liabilities and crimes of LVB and be responsible for them. What is the true position of DBS India on this? Were these considered before accepting the takeover?
It would be utterly ridiculous for DBS India to take over lock, stock and barrel, including liabilities and crimes of LVB, and the Indian govt now simply fold its arms and say it is now DBS India's baby.
What was the $460m for? Paid to who and paid for what? Why should an innocent party pay for the crimes of a rapist?
What do you think?
"Indian-born executives such as Microsoft Corp.’s Satya Nadella, Alphabet Inc.’s Sundar Pichai, International Business Machines Corp.’s Arvind Krishna and MasterCard Inc.’s Ajay Banga are in a position to drive investments and jobs to their country of birth." - (Andy Mukherjee, Bloomberg Nov 28, 2020)
ReplyDeleteI think, knowing India as a well-known highly corrupted country and a famous rapists' country, there must have been hanky-panky going on behind the scenes.
ReplyDeleteDBS International and DBS belong to Singapore but they are run by Indians from India. These India Indians may have taken up Singapore citizenship but their loyalty and faithfulness to Singapore cannot be taken too seriously.
The fact that they have been willing to betray and denounce their original motherland and took up another country's citizenship because of better pay,status and position means they are merciless mercenaries by nature.
They are in it for the money, status, position and a better life. They are not in it for loyalty and faithfulness to serve and protect our country.
Therefore, there is much to question. There is much to doubt. There is much to suspect. There is much to distrust before our banks get into distress.
What are Temasek and MAS doing? They simply standby and watch? They are very happy about the whole rigmarole?
Why was this deal of national implications and ramifications not tabled in Parliament for debate before the commitment and signing?
It looks like DBS India has been taken-over by Indian Courts and at the mercy of Indian Judges instead DBS India taking over LVB.
Something is very fishy.
I think the dude that mafe this bad decision should be siodomized jialat jialat for using opm
ReplyDelete
ReplyDeleteThe Indian CEO of DBS who collects millions of dollars in salary, perts and bonus every year is responsible for this fiasco. He should be sacked and all money paid to him should be crawled back by DBS. This is a lesson for Singapore not to put a foreigner or instant citizen as head of our banks, financial institutions or GLCs.
This is also due to the complacency of millions dollar salaries officials and politicians whose incompetency and negligence will always result in Singapore's losses.
Hahaha...
ReplyDeleteThe amount..sub sub water lah!
Sg has a lot of $$$$$$$$$$$$$$$$$$!
Hahaha.......
LVB was the victim of a insider fraud case that led to it's failure. Did DBS knowingly or by coercion, rush to bail it out? It seems everything was done in a rush as depositors must be howling for a return of their money upon knowing the bank was tottering. In India, bank failures could lead to riots and we all know, money concerns are life and death issues.
ReplyDeleteNow DBS is being told to set aside another sum of money to compensate shareholders. Where in the world do we come across businesses having to bail out shareholders when the entity fails? Only in India can this happen.
India must be the best place to invest in banking, knowing your money invested in them is safe, even when the company go bust. DBS must be thinking along those lines, not knowing that they are stepping on a landmine. When LVB makes profits, the shareholders benefits. When the bank fails someone has to compensate the shareholders for their investments.
Now DBS is being flipped over by Modi Prataman. And Modi is still flipping to make DBS prata more crunchy.
ReplyDeleteHow come still no comment/query on this Indian DBS-LVB fiasco from Pritam Singh?
ReplyDeleteWhere's the opposition check on governmental excesses?
If Tata successfully acquires Air India and runs it outside of Vistara, it will become a competitor of Vistara and damage SIA’s interests. If Tata later injects Air India into Vistara as a combined full-service carrier, SIA’s stake in Vistara will be significantly reduced.
ReplyDeleteEither way, SIA is most likely to be on the losing end.
Good Luck !!
Left hand check right hand is more than enough! If the left hand cannot check the right hand, what can Pritam Singh do?
ReplyDeleteIn any case DBS belongs to the Government. They have so many overseas talent taking care of it. After all, DBS stands for 'Don't Be Scared'! Or what the Hainanese say 'Bo Jionh Kiah'
DBS-LVB Merger: Singapore Government Must Step In
ReplyDeleteSomething is not right in this DBS-LVB merger deal.
In fact, "not right" is an understatement. In my opinion, something has gone seriously wrong, according to my sixth sense.
The deal seems to have other undercover deals that have not been revealed.
It looks like a big con-job (to me) involving the state and the courts at the national level, on an international scale.
Dirty money could have gone (and are still going) into the pockets of some very powerful people at the top.
The government must step on now, to investigate and be involved, to lend a helping hand to DBS so as to protect our national interests.
DBS (in India and in Singapore) must be questioned by a Parliamentary Oversight Commolittee, like in the US Congressional Hearing.
MAS should also be questioned to find out the extent of its involvement if any.
Interpol should be tipped off as early as possible.
CPIB should initiate investigations now.
Keppel O&M corruption in Brazil was undiscovered for 13 years by CPIB. This is a chance for CPIB to redeem itself.
Just my hunch from my gut feeling.
Simply Say Only (SSO)
I think it is OK. DBS India must have taken into consideration all of LVB's liabilities when making this deal. They cannot be that stupid not doing so. No way DBS would ever consider an open cheque to all the claimants of LVB. No way to be that stupid, or are they????
ReplyDeleteIt may not be just a matter of being stupid or not that stupid. It can also be a case of being deliberately stupid or dubiously stupid. In professional term they called it as "overlooked". That's why there is a need to have an "Oversight" Committee to grill those head honchos who are now standing out like sore thumb.
ReplyDeleteIndia - The World's Most Famous Notorious Rapes Country
ReplyDeleteHathras Gang Rape: Four charged over death of 19-year-old Dalit woman
The woman's death sparked outrage in India
Four men in India have been charged with the rape and murder of a 19-year-old Dalit woman earlier this year in a case that sparked outrage across the country and internationally.
The woman was admitted to hospital in Delhi after an attack in the northern state of Uttar Pradesh in September.
She later died of her injuries.
The handling of the investigation was widely criticised, with allegations that local police had deliberately mismanaged the case.
The case was later transferred to India's Central Bureau of Investigation.
A fatal assault, a cremation and no goodbye
A woman reported rape. Why are police denying it?
What is India's caste system?
Dalit women in India are among the most oppressed in the world
The four suspects, who all belonged to a higher caste, allegedly attacked and raped the victim in a field in Hathras district. She died two weeks later.
The victim's family accused local police of cremating her body without their consent, although the authorities denied this. A senior state official also appeared to imply the woman was not raped because semen was not found.
Dalits, formerly known as untouchables, face widespread discrimination and even violence in India, despite laws to protect them.
Rape and sexual violence have been under the spotlight in India since the 2012 Delhi bus rape and murder case, which led to huge protests and changes to the country's rape laws.
There has been no signs of crimes against women and girls abating for the past 100 years.
She later died of her injuries.
ReplyDeleteThe handling of the investigation was widely criticised, with allegations that local police had deliberately mismanaged the case.
The case was later transferred to India's Central Bureau of Investigation.
A fatal assault, a cremation and no goodbye
A woman reported rape. Why are police denying it?
Got such thing meh, deliberately mismanaged the case, by the police?
You must read the news from all over the world, not just the Shit Times.
DeleteThe fact that you have asked such a question shows that you are like a frog in the well.
Sori uncle. Lucky not in Singapore.
ReplyDelete