Posted on 05/15/2009 11:12:00 AM PDT by Kartographer
Just look at Singapore's Temasek Holdings. The fund unloaded its 3.8% stake in Bank of America (NYSE: BAC). The loss? It appears that it's about $4.6 billion. The stock sales came between January and March.
Stupid fund. they sold BAC between 2.50 and 5? It hit 14 last week. So they did no better than a panicky grandma who watches too much CNBC. You’d be better off trading with a dartboard!
Business people are smart regardless the language. They know that if Washington takes over the banks, there will be no rewards allowed for taking risks. So, out they go.
I suspect it was simply non-strategic, these were funds invested in Merrill Lynch in late 2007, just under 10% of the firm for around $5 billion net if I recall. The original purchase has some interesting reset terms which resulted in a several billion "refund" when ML stock dropped, they came out OK.
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