UBS did a Barings | How much exposure Temasek have?

[red amoeba]

[h=1]UBS Reports $2 Billion Loss to Rogue Trader[/h]<address class="byline author vcard" style="text-transform: uppercase; color: rgb(0, 0, 0); font-family: arial, helvetica, sans-serif; font-style: normal; display: block; line-height: 1.1; margin-bottom: 20px; ">BY DEALBOO

rUBS, the largest Swiss bank, said Thursday that a rogue trader in its investment bank had lost it ‘‘in the range’’ of $2 billion.</address>The bank said ‘‘no client positions’’ were involved in the ‘‘unauthorized trades,’’ which it said would possibly lead the bank to post a loss for the third quarter.
In a statement, the bank said the matter was still being investigated and disclosed no other details.
UBS’s shares immediately took a hit on the news, dropping more than 8 percent.
The bank has been struggling to regain its footing of late. Just last month, it announced 3,500 jobs would be cut following poor second quarter results. UBS had said that 45 percent of the jobs cut would come from its investment banking division, which had been one of the bank’s worst performers even before the rogue trading incident surfaced.
The rogue trading incident is the biggest in Europe since Jérôme Kerviel’s unauthorized trades nearly brought about the demise of the French bank Société Générale. Mr. Kerviel was convicted last October of breach of trust and other crimes and sentenced to at least three years in prison. He was also ordered to pay restitution of 4.9 billion euros, or $6.7 billion — the entire amount the bank lost in unwinding his trades in early 2008.

 

[Leepotism]

Ho Ching is the worst gambler in this world. Another loss, another long term investment.

 

[Spiky]

Sigh.

What are govt scholars good at ? Studying and scoring distinctions in exams.

I sincerely believe that the funds at Temasek and GIC will be better managed by a group of professional bookies.

 

[SNAblog]

For UBS, it will be GIC. Thanks to President Tony Tan, GIC becomes the biggest shareholder of UBS with an unrealized loss of about 2/3 of its investment in 2010. Now we can minus another $2 billion from our reserves.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aItZpGnjX31Y

Singapore’s GIC Becomes Biggest Shareholder of UBS
By Lars Klemming and Elena Logutenkova - March 5, 2010 02:35 EST

March 5 (Bloomberg) -- Government of Singapore Investment Corp. said it completed the conversion of 11 billion Swiss francs ($10.2 billion) of notes in UBS AG into stock, generating an unrealized loss of about two-thirds of the investment.

GIC, manager of more than $100 billion of the city-state’s foreign reserves, exchanged the mandatory convertible notes for shares today, said Jennifer Lewis, a spokeswoman for GIC. GIC becomes the bank’s biggest shareholder with a 6.6 percent stake. UBS is Switzerland’s biggest bank.

UBS shares have lost 69 percent to 15.86 francs since the bank announced the sale of the mandatory convertible notes on Dec. 10, 2007 to shore up capital eroded by subprime writedowns.

Together with an unidentified Middle Eastern investor who injected a further 2 billion francs, GIC received 9 percent annual interest for the past two years. That means they face combined paper losses of 6.3 billion francs at UBS’s closing share price. GIC has said previously that it has “confidence” in the “long-term prospects” of UBS.

Since then, UBS’s writedowns and losses from the credit crisis swelled almost threefold to more than $57 billion, the most of any other European financial company, and the bank had to turn to investors including the Swiss government three more times to boost capital.

The bank last month reported its first quarterly profit in more than a year, helped by a recovery at the investment bank and a lower charge on the company’s debt. Chief Executive Officer Oswald Gruebel, who aims to boost UBS’s annual pretax earnings to 15 billion francs in three to five years, is battling to stop withdrawals by wealthy clients, who’ve removed a net 228.1 billion francs over the 21 months through December.

UBS may report its first annual profit since 2006 this year after spinning off $38.7 billion in assets into a central bank fund, cutting 18,500 jobs and appointing 11 new managers to the executive board, according to analysts’ estimates.

 

[Leepotism]

Oops, anyhow blame that loser Ho Ching. This time it's Tony Tan.:p:*:

 

[red amoeba]

parliment opening soon...can either CSM or LTK pls bring this up in parliment?