Wednesday, 21 September 2011

GIC is sitting on a substantial loss on UBS - close to $7.4 billion

[COMMENTS] If you think you are a bad investor and have lost $$$, don't worry the bigger idiots are out there...
GIC is sitting on a substantial loss — close to $7.4 billion — on its UBS stake, acquired for $15 billion three and a half years ago.

Government of Singapore Investment Corporation (GIC), Singapore’s sovereign wealth fund, was already sitting on a substantial loss on its 6.4 per cent stake in UBS before last week’s shock disclosure that a 31-year-old trader on the bank’s “Delta One” desk allegedly lost billions by taking unauthorised futures positions.
Oswald GrĂ¼bel, UBS’s embattled chief executive, met GIC as the bank’s board gathered to review the implications of the scandal, and to consider sweeping changes to the bank’s business model in a long-scheduled meeting timed to coincide with the Singapore Grand Prix.
“[We] discussed the alleged fraudulent trading that led to the large financial loss for UBS,” GIC said in a rare statement. “GIC expressed disappointment and concern at the lapses and urged UBS to take firm action to restore confidence in the bank.”

Imagine what we can do for the Citizens and poor in Singapore with the US$ 7.4 Billion Loss
- Pro-family benefits such as affordable child care/education so that we do not need to rely on FTs
- Subsidise Health care for Chronic illnesses/hospitalizations
- Affordable HDB housing
- Transport systems that are reasonably priced with no failures

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