Saturday, February 28, 2009
The latest move on Citibank saw Singapore wealth fund GIC converts notes at $3.25/share which would rise GIC's stake in Citi to estimated 11.1 percent. A convertible shares in this case is one that can be converted from preference shares to ordinary shares. These means that should Citibank eventually winds up, GIC's ordinary shares will be the last in line to get its capital that he put in back. Furthermore, when the bank makes profit, GIC will be the last to takes it share. This is a risky move from GIC. Should everything fails and Citibank goes under and files for bankruptcy, GIC may lose all its investments.
what we could have been, 11:19 PM.
Friday, February 27, 2009
It seems like another bank has gone down the road. Royal Bank of Scotland (RBS) on thursday had posted a 2008 loss of 24.1 billion pounds. It is a new British corporate record, nothing to be proud of, and said it will ring-fence 325 billion pounds of risky assets in a government insurance scheme. This is the results of misjudegement from business investments such as takeover of Dutch lender ABN Amro and also the credit crisis. It seems to me that many banks directors have taken many risky investments or lend money to high risks businesses without any considerations of whether they have the capital and ability to do so. Banks should take extra precaution when it comes to giving loan to businesses especially the ones with the highest risks eg. financial institutions whose primary role is to trade in stocks and shares of other companies. Sometimes, a business went bankrupt not because it is not profitable in the long run, it has over traded or has expanded too fast without considering whether the company has enough capital to substain over their current period.
what we could have been, 11:38 AM.
Thursday, February 26, 2009
For those who was trapped in mrt train like me during 8.30 pm to 9.30 pm, you may claim your mrt fares if you had vacate the area before the train resumed operations within 3 working days. ;)
what we could have been, 9:52 AM.
Tuesday, February 24, 2009
I was reading news today that Citigroup who was once a leader in banks has dropped its ranking to tenth largest banks in the world and were now in talks with the government and other stakesholders including Singapore very own GIC to up their stake holdings in the bank. Apparently, Citigroup is unable to save itself from the financial crisis and with the deepening of the recession, it led itself slide further down. This is an interesting week to see the plight of Citigroup from a world leader of banks to the brim of its bankruptcy. Should it fails its talks with its stakeholders and the ferderal reserves, we may even see another case of Lehmen Brothers.
what we could have been, 1:27 PM.
Monday, February 23, 2009
I had just received my results no long ago. My law paper is 88 and my audit paper is 59. I am now currently taking F5, F6, F7 and F9 all in one semester. Haha~! All the Best to me I guess~!
what we could have been, 2:04 PM.
