U.S. Plans Bigger Stake in Citigroup
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woohoo! the path to nationalization..
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So GIC finally decided to convert its preferred shares! So much for long-term investment.
"Government of Singapore Investment Corp. Friday said it has agreed to convert its preferred shares in Citigroup Inc. (C) into common stock at $3.25 a share.
The conversion price is well below the originally agreed conversion price of $ 26.35 a share. GIC said in a statement that after the conversion its stake in the troubled U.S. bank will rise to an estimated 11.1%."
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Wow.. so 11.1% stake in a worthless bank! Well done... GIC. So what's left to say? Can they finally admit that their investment is terrible when non-professional people in the forum have been pointing it out to them 1-2 years ago?
Anyway, why do you think GIC converted their 7% yielding prefered shares for common stock that pays 1 cent dividend? That's because Citigroup suspended dividend payments on prefered shares today!! So lan lan GIC have to convert. The ST media then GIC being valiant and a good sport trying to help the US cause to shore up equity base for Citigroup, when there's no other better alternative for GIC. At least they can butter up relationships with US by converting to common shares. Otherwise, I am sure GIC would have prefered to collect 7% on their 10 bil up front purchase for the next few years.
So much for Tony Tan's ingenious comment about long term investments. I guess his definition of long term is 1 year. Anyway, all the banks except Barclays that GIC/Temasek have bought is going to be nationalized eventually and equity stake will be wiped out with debt stake greatly diminished. It's easy to note that Temasek would have lost more than 31% by now.
I hope the Govt don't claim they have exceptional talent in their civil service anymore. As we have witnessed with our own eyes, talented people paid with astronomical salaries in the financial sector have totally destroyed the global economy with their greed. We have a similar situation in the govt service, where we assemble highly talented people paid with exceptional salaries (Obviously these individuals are greedy otherwise why would they only serve the country for high salaries). Would Singapore collapse like the banks do? After all Singapore is run like a corporation.
One gripe is I don't get why Temasek and GIC invest the hundreds of billions they had into Singapore industries. Give free education to it's citizens, foster innovation, support local industries like Creative and transform them into world class firms .. instead they invest it in foreign firms and lose it all.
At least if the money was lost in supporting local firms like Creative or Chartered Semiconductor, I won't feel that bad!
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NOTE:
GIC has realised a loss of around half its investment.
It now means GIC are in the real danger zone.
see: 28 Feb `09, 7:23AM
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Originally posted by AndrewPKYap:
NOTE:
GIC has realised a loss of around half its investment.
It now means GIC are in the real danger zone.
see: 28 Feb `09, 7:23AM
No problem, me still got tao huay, yew teow, and UCC coffee for breakfast...yeah!!!Dun worry so much lah, Uncle, take your medicines ya.
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Too bad I dun play US stocks .... Else I confirm buy Citigroup shares ...
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Citigroup shares plunge again after latest bail-out plan is revealed
guardian.co.uk - 1 hour agoPanicked Citigroup shareholders fled the ailing banking group in droves last night as the US government stepped in with plans to take a 36% stake in the company and remove a number of directors. Minutes after the government released plans to take what ... -
Originally posted by Ice Dive:
Too bad I dun play US stocks .... Else I confirm buy Citigroup shares ...
so u play what shares??? Cares and Shares ar?? -
Originally posted by AndrewPKYap:
Citigroup shares plunge again after latest bail-out plan is revealed
guardian.co.uk - 1 hour agoPanicked Citigroup shareholders fled the ailing banking group in droves last night as the US government stepped in with plans to take a 36% stake in the company and remove a number of directors. Minutes after the government released plans to take what ...
yeah!!! Obama, Obama..Obama..me want to be Obama gal!! -
Originally posted by angel7030:
so u play what shares??? Cares and Shares ar??
WHat is cares and shares ?A lot of people paying shares and getting burnt .....
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Originally posted by Ice Dive:
WHat is cares and shares ?A lot of people paying shares and getting burnt .....
http://www.asiaone.com/Business/Story/A1Story20080803-80279.html.Check it out dude
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I am not into the funds from NTUC ...
Basically , I trade shares in SGX like any other individuals.
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Originally posted by Ice Dive:
I am not into the funds from NTUC ...
Basically , I trade shares in SGX like any other individuals.
u said u play shares mah, cares and shares also share mah, share your passion and care for the lower income.trade and play is different hor.
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Originally posted by angel7030:
u said u play shares mah, cares and shares also share mah, share your passion and care for the lower income.trade and play is different hor.
What is the diff ? -
Originally posted by Ice Dive:
What is the diff ?
play are those who likes to play, trading is something have to give way in one way or the other...give and take.Usually, those rich ones play with the sharemarket, and the middle or poorer ones have to trade with them, that is why, it is called, an exchange. It is a playground for the rich to play with the people below them.
Today the playground is going under renovation, so the rich got nothing to play lor, and the peoples got nothing to trade with lor.
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Why am I not surprised? Bankers are overrated and overpaid for too long. The finance industry does not generate actual wealth. As Ngiam Tong Dow puts it, bankers 'are not creators of wealth, they are just shuffling assets around the place.' But now we have too many of them...what shall we do with them? Shoot them?
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if GIC dont convert into common stocks, citi will stop paying dividends.
what kind of agreement did our intelligent GIC get into with Citi?
Lee Kuan yew and Tony Tan, dispite all the intelligence you claim you possesses, you have been taken for a ride by Citi.
Go to Hell!
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Originally posted by ShitSandwich:
Wow.. so 11.1% stake in a worthless bank! Well done... GIC. So what's left to say? Can they finally admit that their investment is terrible when non-professional people in the forum have been pointing it out to them 1-2 years ago?
Anyway, why do you think GIC converted their 7% yielding prefered shares for common stock that pays 1 cent dividend? That's because Citigroup suspended dividend payments on prefered shares today!! So lan lan GIC have to convert. The ST media then GIC being valiant and a good sport trying to help the US cause to shore up equity base for Citigroup, when there's no other better alternative for GIC. At least they can butter up relationships with US by converting to common shares. Otherwise, I am sure GIC would have prefered to collect 7% on their 10 bil up front purchase for the next few years.
So much for Tony Tan's ingenious comment about long term investments. I guess his definition of long term is 1 year. Anyway, all the banks except Barclays that GIC/Temasek have bought is going to be nationalized eventually and equity stake will be wiped out with debt stake greatly diminished. It's easy to note that Temasek would have lost more than 31% by now.
I hope the Govt don't claim they have exceptional talent in their civil service anymore. As we have witnessed with our own eyes, talented people paid with astronomical salaries in the financial sector have totally destroyed the global economy with their greed. We have a similar situation in the govt service, where we assemble highly talented people paid with exceptional salaries (Obviously these individuals are greedy otherwise why would they only serve the country for high salaries). Would Singapore collapse like the banks do? After all Singapore is run like a corporation.
One gripe is I don't get why Temasek and GIC invest the hundreds of billions they had into Singapore industries. Give free education to it's citizens, foster innovation, support local industries like Creative and transform them into world class firms .. instead they invest it in foreign firms and lose it all.
At least if the money was lost in supporting local firms like Creative or Chartered Semiconductor, I won't feel that bad!
It's easy to note that Temasek would have lost more than 31% by now.It was reported in the media as 31% but someone here in Sgforums recalculated and pointed out that it was almost 54%.
see http://sgforums.com/forums/10/topics/347781#post_8834460 14 Feb `09, 1:20PM
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The deal would not involve new money from taxpayers. The government already has invested $45 billion in the troubled New York bank. Citigroup now will be allowed to repay up to $25 billion by issuing the government shares of its common stock, which carry ownership rights. The government could end up owning about a third of the company, said the sources, who spoke on condition of anonymity because the talks were ongoing.
A key feature of the (new) deal is that Citigroup must find private investors to match the public support. The government will accept common shares equal to the amount accepted by those investors, up to a limit of $25 billion, on a one-for-one basis.
Under the plan, the government would forgo billions of dollars in dividend payments that Citigroup was required to make on the existing investments, which paid annual interest of 5 percent. However, taxpayers would benefit if Citigroup's shares rise in value.
This is the third round of government help for Citigroup. In October, Treasury invested $25 billion in the company. In November, Citigroup got another $20 billion plus a government guarantee to limit its losses on a portfolio of more than $300 billion of troubled loans and other assets.
The steps did not comfort investors, who have come to doubt whether the most international of U.S. banks can withstand a global recession. Citigroup's shares have lost 90 percent of their value in the last year, closing at $2.48 in trading yesterday on the New York Stock Exchange.
One apparent reason: Many investors concluded that the government money did not count as part of Citigroup's capital reserve against future losses, because the investment looked like a loan. The company was required to issue the government shares of preferred stock, which carried an interest rate that spiked after five years to encourage repayment.
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/27/AR2009022700019.html?hpid=topnews
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Originally posted by angel7030:
play are those who likes to play, trading is something have to give way in one way or the other...give and take.Usually, those rich ones play with the sharemarket, and the middle or poorer ones have to trade with them, that is why, it is called, an exchange. It is a playground for the rich to play with the people below them.
Today the playground is going under renovation, so the rich got nothing to play lor, and the peoples got nothing to trade with lor.
Anyone else agree with the play and trade thing ? -
I think if this crisis has taught us one thing, it is the necessity for regulations, for above board open accounting of the firm to it's shareholders, of a nation to it's people. There's nothing political about such calls, just an exercise of prudence and a dose of reality.
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Originally posted by Quincey:
I think if this crisis has taught us one thing, it is the necessity for regulations, for above board open accounting of the firm to it's shareholders, of a nation to it's people. There's nothing political about such calls, just an exercise of prudence and a dose of reality.
...ah but if the regulators are clueless about sdo swaps, how are they to regulate?
