CNBC David Faber described Temasek sale of BOA as “one
of the worst investment” for one single fund
“A $4.6 billion loss on a
$5.9 billion dollar investment. TPG lost $2 billion
really quickly on Washington Mutual, but this one guys, is right up
up there, as one of the worst
investment during this period for one single investment
fund.”
Now, what does the Lee family think of this latest investment
loss?
Ho Ching, Temasek’s CEO, wife of Prime Minister Lee and
daughter-in-law of MM Lee:
“No. I think if you want to run life with regret, you will end
up doing very little.” (when asked if she had any regrets about
leaving Temasek, Reuters 6 February 2009, source)
Lee Kuan Yew, GIC’s Chairman, father of Prime Minister
Lee and father-in-law of Ho Ching:
“When we invest, we are
investing for 10, 15, 20 years. You may look as if
you are making a big loss today, but you have not borrowed money to
invest. You will ride the
storm, the company recovers, your shares go up.”
(CNA, 7 February 2009, source)
Lee Hsien Loong, Prime Minister of Singapore, husband of
Ho Ching and son of MM Lee:
“Both Temasek and GIC are professional investment organizations,
highly regarded around the
world for their track record. Management hired all
over the world. Boards
are competent and experienced. They pursued
sustainable returns over the
long term, and avoided excessive risk-taking for short-term
gains. Thus we have achieved good long
term returns through ups and downs in the global economy and
market cycles.” (in a speech on 21 October 2008, source)
Since we are investing for the long-term, why did Temasek sell
of its stake in BOA so early and at such a low price? In less than
a year, it lost 83% of its initial investment in Merill Lynch!
Is Temasek pursing “sustainable returns” over the long term by
pulling out so early from BOA? Does Ho Ching still have “no
regrets” over such a disastrous loss? Of course she won’t, since
the money is not from her own pockets.
Does Singapore still has a future when its SWFs are bleeding our
precious reserves dry with such ill-judged investments?
Imagine using the $4.6 billion dollars to help ordinary
Singaporeans tide over the current economic turmoil by subsidizing
medical bills, providing retrenchment benefits and paying for the
education of needy students.
The government kept telling the people that we should be
self-reliant and not develop a clutch mentality. It is not as if it
has no means to help the less fortunate in society. It is so filthy
rich that it is able to blow billion dollars away in an instance
without blinking an eyelid!
In her latest speech as Temasek’s CEO, Ho Ching said:
“We must do things today
with tomorrow clearly in our minds. The story of
Temasek is likewise a journey, each generation doing things
yesterday and today with tomorrow very clearly in our minds – to
make a difference to our fellow men and women, to support and
build a future where Asia and
Singapore can realise their full potential for their
people, and to put in place the foundation for a
better tomorrow.” (read her speech here)
Forget about Asia, Madam Ho. Haven’t you caused enough trouble
in Thailand? Obviously the investment decisions made by you during
your tenure did not take the future into account. How else can you
explain the terrible losses suffered by Temasek from the purchase
of Shin Corp, ABC learning and now Merrill Lynch?
The Singapore government must account to the people immediately
on the latest loss by Temasek since it is a corporate entity fully
owned by the Ministry of Finance which is in turn financed
completely by taxpayers’ monies.
It is a shame that the PAP pay only lip service to transparency
and accountability and continue to demand us to pay them exorbitant
salaries only to screw up big time, again and again.
http://sgblogs.com/entry/cnbc-david-faber-described-temasek-sale-worst-investment-single-fund/341689
