Tuesday, May 19, 2009

Error of Judgement II

It seems that Singaporeans (at least from the look of 'mainstream' media) are quite cool about losing (buckets load of) money in bad investments. Temasek has lost US$4.6 billion on a US$5.9 billion investment in their Merrill Lynch-turn-Bank of America stakes. Given the fact that Temasek professes itself as a long term investor (10, 15, 20 years), it is puzzling why they should choose to realise their loss at this moment. Ironically, BoA share price has risen to US$11.81 since last night.

The Straits Times wrote a mildly worded piece on the episode to act as damage control, but I shudder to think what the citizens of other countries will be saying if this has happened in their countries.

Kudos to Singapore government for pre-empting any salvo being fired though, by graciously orchestrating a stepping down for Ho Ching. Let's hope the new CEO Chip Goodyear can live up to his name, literally, by providing a very "good year" to the people's investments.

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