Singapore is not happy. This, of course, may be a vast understatement as the city-state's sovereign wealth fund assesses the fallout from a $2.3 billion unauthorized trading loss at UBS AG.
The Government of Singapore Investment Corp. is UBS's biggest investor. The hit Singapore may take in the short term is another sobering blow for the state wealth funds that were supposed to alter the face of capitalism forever.
Now Singapore's sovereign wealth fund may be regretting the roughly 6.4 percent in UBS it grabbed in 2008. It's a reminder of the risks inherent in today's chaotic markets. It's also a sign that even the big, big money should expect to take its share of lumps in the months -- and years -- ahead. Full story
