Saturday, January 19, 2008

GIC money for Citibank....

Citibank is lucky to have MM Lee as its special advisor since 2006:

http://www.citigroup.com/citigroup/press/2006/060905c.htm

See any organisation that has the benefit of great leadership and wisdom of our MM Lee has a good chance to soar to new heights. Unfortunately for Citibank, they probably didn't follow his advice too well - created too many SIVs, CDOs and MBSs.....three-letter-words that have been the bane of American banks. Citibank announced US$18B in writedown last quarter and new capital of US$14.5B from various investors ...of which US$7B is from Singapore's GIC:

http://english.aljazeera.net/NR/exeres/6091F772-0B35-4D16-A718-835C295239A9.htm

"To a question by opposition MP Low Thia Khiang (Hougang) on whether the Government of Singapore Investment Corporation (GIC) uses funds from the CPF funds to invest,
Dr Ng said: "The answer is no."
,
"Later he rose to add: "The relationship is not so simple".
.
Singaporeans can be proud that they now own about 4% of Citibank. Although Citibank faces challenges such as rising default in credit card debts and auto loans, it will be able to get the best advice from our MM to overcome its problems. ...
.
Singaporeans should continue to work hard and buy annuities because our govt cannot help you when you reach your 80s....it is not prudent for them to take care of old folks when there are so many great banks to buy.

18 comments:

Anonymous said...

And if the subprime get worse and there is a meltdown, and Citi and UBS has a fall out, and the US Fed refuses to help out again...what next? I think our GIC and Temasek will be called upon to support all these international banks. Do you seriously think MM Lee will allow these banks to fail? This is the start of a scary trail. Let us pray. Uniquely Singapore. All these while Malaysia Govt tries to cap the prices of fuel and cooking oil, Indonesia cap the price of soya beans to help their citizens, but the Singapore Govt is so happy to let our inflation shoot sky high. And let us all remember that we shot our foot first with GST hike to 7% - no, not to help the poor, but to Help Citibank. Really what can we do about soaring oil prices ? Try reducing the diesel / petrol tax for a start??? Duh?

Anonymous said...

Wonder who is advising whom?

MM Lee is supposed to advise Citibank but why is he doing what American banks have been doing in the US?

He allows banks here to sell credit cards to students. Now the PAP govt is also selling condos priced at S$700K to Singaporeans with money loaned from the banks.

Wait for the coming subprime crisis Singapore style, never mind buyers are saying "cheap, cheap" now.

Looks more like MM is being instructed by the American bank what to do with his nation.

The injection of GIC billions $ into Citibank is to all indications conducted on that basis.

--

As for Hen saying that the relationship between GIC money and cpf funds, we now know that the CPF Board buys govt bonds, the money goes to MAS which is then used by GIC and Temasek. That way, Hen can say GIC and Temasek are not using cpf funds.

Really? He can't even think properly.

Merlot said...

so now I can safely proclaim myself a n investor in Merrill Lynch and Citibank... or rather, a shareholder since its my funds that conrtibuted to these funds for investment aint it?

Brilliant thinking. Now all I have to do is to sit back and pray hard that these banks would pick up so I can get my monies back....

Anonymous said...

Next crisis in the making: The current downgrading of bond insurer, ie Ambac and MBIA, will have far reaching implication. If these big guys start go under, a lot of these of deriatives 'insured by them' will be in great danger.

As someone said, it "will make current write-downs of major banks looks pale in comparison." Will we be sucked into this financial 'blackhole'?

Anonymous said...

Spore govt is the "Gong Kia" for the American govt. Everything the Americans tells the FamiLee, the Spore govt will obey & do it. In 1997, McKinsey conducted a consultancy report of Spore's banking & securities trading industries using the US Banking & Securities Market as their model. They had proposed liberializing both the banking & securities sector in line with the US Model. For the securities side, they proposed reducing the commission to increase trading volumes & to attract international stockbrokers into Spore via mergers or aquisitions. For the banking side, they recommended forced mergers between local banks to strengthen the banks to compete against international banks' entry into Spore domestic banking. The MAS Chairman, LHL did everything as McKinsey recommended & the wonderful result was there for every Sporean to see - many remisiers & dealers left the industry between 1998 to 2004. Many stockbroking firms were taken over or closed shop. As a result, many backroom staff also lost their jobs. Todate, the international stockbrokers are nowhere to be seen. The whole industry shrank during this liberialization period. For the banking sector, the forced mergers between local banks in 2000-2003caused tremendous dislocation of staff - retrenchments, layoffs & forced early retirements. At the end, the international banks were hardly a threat - ABN-AMRO, Stanchart, HSBC, Citibank - they were already here for many years. No new international banks came. The McKinsey report was a piece of shit - using the broad & deep US market model on Spore financial market which is not as well developed as the USA. LHL caused many good Sporeans to lose their jobs or careers - banking, dealers, remisiers, backroom staff, etc. Many couldn't even find a job that was close to matching their skills - many ending up underemployed as security guards, taxi drivers, hawkers, etc. Those who were lucky migrated, those who weren't so lucky were left behind to face an uncertain future. Fuck LHL with his million dollar pay when he had destroyed many people's livelihood.
The 1998 Asian Crisis was also another eye-opener. The Spore govt lay with their legs wide open for the hedged funds to fuck them & also let Dr Mahathir sodomize Sporeans on their CLOB shares. It was left to Dr Mahathir & Donald Tsang to corner the hedged funds [US based] & got them to get the fuck out of Asia. Dr Mahatir closed the Msian market to them by imposing foreign exchange controls on the ringgit & restricting foreign buying/selling of Msian shares as well as forbid short selling of Msian shares. Donald Tsang, on the other hand, was more market savvy & a sophisticated operator. He got the Chinese Govt to support/fund his buying of key Hang Seng index/blue chip stocks as well as in supporting the weak HK$. He increased the futures deposit requirements for all futures stock index & currency contracts. In short, he squeezed the short sellers in the market both ways, 1-causing them to lose money with their "naked" short positions; 2-forcing them the ante up the cash for their futures contracts. The hedged funds quickly scrambled to close their positions to avoid losing their pants. As for Spore, they did nothing & yet crowed about doing the right things during the Asian crisis. Frankly, if not for Dr. Mahathir & Donald Tsang, Asia would still be in the dark ages today - indebted to IMF/World Bank harsh reforms. Many Sporeans lost their life savings during the CLOB closure issue with Msian but LHL/MAS/SES have kept quiet & have not admitted any liability with CLOB. Fuck them, fuck them all in hell!

Anonymous said...

Oh my god, so the old man had his hands in the citibank mess! and now he is helping them out. how would that help us?

Anonymous said...

It is all about the bootlicking is it not?

Let our funds roll into troubled American banks so they might be grateful to us..

Let China and Indian foreigners have easy access to Singapore so that we have a bond with them, these two strongest developing countries at the moment.

Have they stopped to think that these monies could be utilised for better uses i.e. to better their countrymen's lives or to do wiser investments? Have they been able to recover our monies back from investments in Thailand?

And I am sure whoever decided on this must be a genius

Anonymous said...

Wah Lauz! Must be a bad week, everyone seems to be in a foul mood, all those cursing and swearing, for me I wish I was wise enough to make the decision in Dec, good thing tomorrow no work. Cheer up guys, it is never as bad as it seems!

Anonymous said...

You're right anon 6:22. Sometimes things are just beyond our control and we can just get drawn into a foul mood.

Like the current stock market turmoil, if one follows it because of one's investment in stocks, it can make one depressed.

May be a little entertainment like singing, chess, music, comedy might help elevate the mood.

Like they used to say "No news is good news" and since we can't avoid news bombarded at us, may be one can just switch off from them for a while just to keep up the sanity.

It's not easy living in Singapore.

21st dec 2012 said...

Continue to PAY and PAY loh.
Continue to vote for "PAY and PAY Inc." loh.

Anonymous said...

There is a motive for them buying into these troubled American banks and that is they are hoping that with the injection of funds from the Arabs and Singapore Government etc they could help to prevent further deterioration of the American banking system and the economy and thus prevent a recession which will affect Singapore seriously. The worry is that such funds may not be enough to do the job and American still go into a recession. That will put Singapore in deep shit. What then? Remember the immortal one is advising Citigroup and he has to do something.

Anonymous said...

i guess it may be the proudest moment for singaporeans then...
when the fate of the world's economies actually rest in their hands.

Anonymous said...

Something very strange is going on.

There is this American subprime crisis causing tremendous stock market turbulence, agitated by the American govt and market leaders sayinng "Bad, bad, bad" all the time.

Believe it or not, read what George Soros is saying today : " ... the world was facing the worst financial crisis since World War Two ..."

You see, global recession has to be engineered. Otherwise how are the money masters going to make big money by buying up the fallen stock prices around the world. Also how are they that actually owned the Fed going to enrich themselves without their government having to borrow hundred of billions from the Fed. Yes the Fed is in fact owned by private American banks.

Thus creating scarcity is part of their business strategy of these money masters. Stabilizing the economy and preventing crisis have never been in their agenda. And this includes the roles of IMF and World Bank which PM Brown of UK has rightly criticised yesterday.

Remember the Asian Crisis of 97/98, how the US dollar which had been falling, sprang back to glory for after that? The current depression of the global stock markets have already cause an appreciation of the US dollar.

There is more than meets the eyes. A strategic global economic war is going on and for all we know Singapore politicians are just pawns and proxies of one or even more big powers.

Some big country wants us to be forever poor to feed their greedy appetites. But I bet the game is no longer as simple as the pre Asian Crisis days, given it is no longer a unipolar world order. The interesting show is playing itself out.

Anonymous said...

Anon 1.15 pm is absolutely right. The money masters have already made their pile and are engineering a crash so that they can move in and buy up the bargain stocks. Then they will create another cycle by driving up stock prices to enable them to cash in again and again. The trouble is people still continue to play the game one cycle after another. There are big winners and there are big losers as well. But the sad thing is the big losers are mostly the ordinary folks, all of the time. And they slog and save so hard to feed the big players.

Anonymous said...

Actually strategy of the money masters goes beyond the stock market because if the stock market collapses then the whole economy also follows. This was Singapore's experience.

Many businesses and jobs were lost. The whole economy underwent drastic restructuring with our people taking the brunt even while the pappies continue with their world class salaries. And PAP covered it all up through the years.

The idea of the money masters is to suppress and destroy the development of other countries so that the US where most the money masters are based will also be supreme.

At the height of that Asian Crisis Donald Tsang flew to Singapore to give PAP an opportunity to work with China's help to lift back our stockmarket.

That diplomatic trip was openly made probably because China wanted Singapore to take side with China openly. PAP opted for the US.

The result : With financial help from China (as Hongkong politicians now revealed) the Hongkong govt bought up shares and caused the Hang Seng index to quickly return to normal.

The Hongkong govt made HK$30 billion in profit when it divested from its position in 2001.

However for Singapore the STI fell 60% over a 2 years period and took another 7 or 8 years to climb back. The only benefit that Singapore got from obeying the US and IMF for not intervening in the stock market was USD1 billion given by the US govt to the PAP govt. for the suffering.

See what a prostitute and how cheap PAP is? It sold out our people and economy for so little.

Now it is happening again. STI will experience another disaster.

PAP thought over the last 10 years it has successfully returned this economy to normality, what with the high foreign workforce policy.

But so long as the stock market is unprotected, so is the general economy. The money masters of the US which have exploited not only its own American people but also the world for untold wealth at the expenses of untold sufferings of others have to be fought with the same weapon : money.

China-Hongkong have won on that count before. This time the move might be different. Watch and pray.

Are other large economies similarly prepared? Have the last 10 years been spent in vain without learning the proper lessons on how to protect their stock markets, as the PAP, for all its bragging, seems to be displaying right now? I am talking about large emerging economies like India, Russia, Brazil and such countries.

If PAP squanders our money to feed the money masters, this nation will be literally bankrupt. But do not feel hopeless even then.

Who knows another big country might desire to make a close ally of this country and decide to help us and hopefully make the pappies irrelevant.

One well-funded proxy of such a big power has already made his present forcefully felt in the stock market - the Natsteel saga a few years back - to the frustration of the pappies who apparently had a vested interest in that company.

The least we could do now is not to be ignorant of what is really going on and believe slavishly all that the PAP is saying through its mass media that it was all the work of "market forces".

Fight the exploiters on mental level. This is the least we can do.

Blog like this has made this possible.

Anonymous said...

Thanks to our leaders' great foresight, our Sovereign Wealth Funds have financial clout to shock and awe the world
FOR the past two months, 'shock and awe' swept through the entire global financial market by our small country's two Sovereign Wealth Funds (SWF).

The financial world was 'shocked' when a small country less than 1,000 sq km in size injected US$10 billion into Union Bank of Switzerland. 'Awe' came when similar injections were made for Merrill Lynch and Citigroup; no less than US$20 billion were committed in less than two months. It seems that there is no limit to the strength of our SWFs. The Strait Times subsequently published many articles relating to these funds and their activities.

It was a coincidence that 'National Treasure', a film about a group of treasure hunters looking for the mythical Lost City of Gold, was screened in cinemas at the same time when our SWFs made their investment. Wikipedia showed that Singapore's GIC and Temasek Holdings hold two positions among the top seven global SWFs (worth more than US$100 billion each).

If Wikipedia's estimates of more than US$400 billion combined assets are correct, it means each kilometre square of Singapore land is worth at least US$0.5 billion, making us the richest country in the world by SWF standards. There is nothing mythical about Singapore and we are definitely not lost, so is Singapore the modern day City of Gold?

Most will be too shocked to look beyond these figures, but many world leaders know Singapore is the only non-oil producing country on that list. Our pioneer leaders have fiercely guarded these foreign reserves since our independence. Opposition parties have many times called for the use of these funds and, for the past 40 years, there were many times that these funds had come in handy; the oil crisis in the 70s, the recession in the mid-80s, the financial crisis and economic slump after 1997. Every time when there was a crisis, Singapore's leaders did not succumb to temptation of using the fund - they bit the bullet and pushed for internal changes. Every time Singapore became stronger, these funds grew.

Fortunately for us, we voted for the correct party to govern our country all these years and after many painful transformations, Singapore now has one of the most robust economies in the world and also is one of the richest nations in the world. Is National Treasure all about money? No, it is our pioneer leaders who had the foresight and determination to build wealth for the nation and make it stronger.

Syu Ying Kwok

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