Thursday, March 4, 2010

GIC: Another US$5 BILLIONS down the drain

From: "WanChonRen"
LKY mentioned many times before that if it was not for the PAP government in
control of the Temasek and GICs' monies which is very well considered as
Singapore's reserve, it would have been bankrupted long ago. I would
encourage Singaporeans and New Singaporeans (similar to Newater) to continue
to vote for these multi-millions to delay their bankruptcy.

"truth" wrote in message

> truth comment: at the rate these assholes are losing our
> money, how long can the reserve last under current
> arrangement where it is controlled by a few priviledged
> singaporeans.

> SINGAPORE: The Government of Singapore Investment Corp (GIC) said Friday
> that it has converted its UBS notes into ordinary shares, suffering a
> paper loss of about US$5 billion.

> GIC had invested 11 billion Swiss francs (about US$10.22 billion) in
> mandatory convertible notes in UBS to support the Swiss bank during the
> financial crisis.

> GIC did not provide more details.

> Last month, a filing that GIC made to the US Securities and Exchange
> Commission showed the original conversion price would be 47.7 Swiss
> francs, two-thirds more than UBS's last share price of 15.86 francs.

> GIC had earned about two billion francs from a nine per cent coupon over
> the last two years, which partially compensated for the sharp erosion in
> UBS' share price.

> The filing had said GIC would exchange the mandatory convertible notes for
> 230.7 million ordinary UBS shares on March 5.

> GIC would have a stake of 6.6 per cent in UBS after conversion, making it
> the Swiss bank's biggest shareholder.

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