Financial Times, 7 Jan 2009, Saskia Scholtes and Greg Farrell
Temasek, the Singapore state investment fund, is sitting on significant paper losses related to its stake in Merrill Lynch, the investment bank acquired by Bank of America last week.
The state agency’s unrealised losses could amount to more than $2bn, excluding any hedges, according to a Financial Times analysis based on publicly available filings.
The loss is emblematic of the damage the financial crisis has wrought on sovereign wealth fund investments in the banking sector and helps explain why funds have been reluctant to commit further capital to banks.
Some 40 per cent of Temasek’s portfolio is in the financial sector, and it has suffered paper losses on other investments, including Barclays, Bank of China and China Construction Bank.
Read More
Related News:
Temasek's Merrill investment reduced by more than $2 bln - Reuters India, 8 Jan 09
Temasek Converts Merrill Stake Into 189 Million Bank Of America Shares - CNNMoney.com, 8 Jan 09
State-owned Temasek shrinks capital worth on Merrill stake - International Business Times, 8 Jan 09
