http://sg.news.yahoo.com/rtrs/20090227/tbs-gic-citi-7318940.html

"GIC supports the initiative by Citigroup and the U.S. government to strengthen the quality of the bank's capital base," GIC said in a statement.

GIC's executive director Tony Tan said this month unleveraged global investors such as sovereign wealth funds will pay a more important role in future as hedge funds and private equity find their activities constrained by tighter borrowing restrictions.

Western governments, which have taken large stakes in banks to prop up their financial systems, will eventually have to "re-privatise" assets on a massive scale and will need to attract long-term institutional investors like sovereign funds when markets stabilise, he said.

Hi AK did U made ur purchase <US1.20..?. Hope U do. happy trading...YA

Today Straits Times paper reported US three financial huge gain. Dow Jones Industrial Average of 30 blue Chips surged 9% on the week to end last Friday at 7,223.98.

The board base market standard and poor's 500 bounced back from nearly 13 years low, rallying 10.7% in the week to 756.65

Tech heavy Nasdaq composite climbed 10.6% over the week to 1,431.5.

Citigroup jumped 73% to US$1.78ct

BoA rose 83% to US$5.76ct while

JPMorganadded 49% to US$23.75ct

PM argument to compare our SIA, KCI etc with investment in the likes of Citi is really off tangent.

Our investment in Citi, UBS, ML, we take a minor stake (a few %) in these companies. We have no board seat and we have no control over the direction of growth and development of these companies. It is with the same objective as retail investors (note....I say 'investors' and not 'traders') in the stock maket. There is little or no strategic purpose in these investments except for roi and yields.

Whereas, SIA, KepCorp, SembCorp are our home grown companies where the govt holds significant controlling stake in the companies. Whilst the govt will deny it, it does influence the direction of growth and development of these companies.

The govt have always claimed that these investments (in Citi, UBS etc) are for loooong term......if this is true, then why did they sell off their stake in China Construction Bank, Bank of China for a profit after holding it for a short time (1-2 years?)....this seems to contradict their argument of looong term investment.

Likewise, the contradiction of their policy of our national assets when they sold off the power stations (now all owned by foreigners) when TH needed to raise capital to cover their investment losses. Should we not have kept control of the power stations for strategic reasons???? Afterall, the control of electrical supply is vital to our national security. I guess the sale of the power stations was  chosen cos it would have been less glaring to the public as they were not listed on the stock exchange......and hence issues like selling price, profit from sale, terms and conditions of the sale, etc would not have been subject to public and minority investors' scrutiny. 

Yes, you have a point....its cheaper to buy from the open market at say about 1.50. But, that means GIC will have to use more of our reserves  to dump into this lousy share.

By converting the Pref shares, (Pref sh were bought at 29.00 ea), GIC will get 8.92 ord shares (29.00/3.25= 8.92). No need to waste more money in a badly considered investment (remember, someone in GIC - think it was Tony T who boasted that GIC took all of 48 hrs to do their due diligence). I would be more impressed if GIC claimed they made a profit of 6.88B (the total investment in Citi) in 48 hrs. Any idiot can spend 6.88B in 48 hrs ...which, of course reflects on GIC and TH.

Furthermore, the push to convert was also due to Citi saying that they will not be paying the 7% divident for the Pref sh. So, for GIC to hold onto to PS will mean there will be no 'yield' for the foreseeable future.

If GIC were to try to purchase the same no. of shares in the open market (6.88bil/3.25=2.12billion shares)........I doubt the price of citi would have remained at 1.50.

So, conversion at 3.25 is a very, very lucky break for GIC considering that the original conversion price is 31.43. If Citi survives, I think its price has a fairly good chance of breeching 3.25. This stoke of luck, of course, has absolutely nothing to do with any possible ounce of investment savviness  that may possibility exist in GIC...but knowing the Establishment, they will be blowing away at their trumpets when this happens..... 

A lot do not seem to know or understand that retailers cannot just like that.....(SWF's cannot buy  from open market everyday traded price). SWF's cannot do so like us buying  1 - 2 hundred shares. They bought in many, many million of shares, worth in many, many billion of dollars....Tony just did that with just a stroke of a pen and before Obama 1st term is up...Citigroup is likely to recover back to it TP of US$3.25ct...sooner the better..1st to go in..1st to get out, their CEO target 12 mths - 18 mths away, given huge commited support by...

teeth53 thot: 50 + 1% chances to make it grade tipping the scale just by winning by the nose.

Headlines indicated US president Obama is ready to do battle with those lobbyists saying he didn't come here to do the same thing we've been doing or to take a small stepforward. He mentioned "I came to provide the sweeping changes that this country demanded when it went to the polls in November 2008.

Taking on the critics "I know they're gearing up for a fight as he speak. His meesage to them is this..So am I." President Obama word. 

Great mind think alike....Obama think is not right to nationalized any bank of such size when it has GIC as 2nd biggest supporter or others international shares holder supporting.

Straits Times Sunday paper give a more details account today, indicating GIC when in on 1st and 3rd round, round to rescue Citigroup, unlike Saudi Arabic Prince which has went in on 1st, 2nd and 3rd rescue...now holding less then GIC, so GIC is still one leg up among against the other...Think think GIC should send our Finance minister as an independent director, or ex-Finance minister Dr Richard Hu and / or Tony Tan there...to over see this huge investment.

01101749      ( Date: 01-Mar-2009 11:14) Posted: Citi group and BOA will not exist in 2 years. most likely nationalized or insolvent. Their mounting losses on big bets they made and made them zomby banks which will drain the US of billions and billions dry. so best is to put them to sleep. my friend bought citi at $20 per share and many betting citi will recover to the peak. too bad they R WRONG! bye bye to their saving!  make long bets on bear market most liikely to be wrong.  make long bets on bull markets u r likely to be correct.