A year ago, a variety of sovereign wealth funds plowed billions into the U.S. financial services industry. Yes, it looked like the "smart money" was making a move. But, of course, it turned out to be a disaster.

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.

And the overall portfolio of Temasek suffered a 31% plunge during an eight month period (as of the end of November).

Continue reading Temasek bails on Bank of America

Temasek bails on Bank of America originally appeared on BloggingStocks on Fri, 15 May 2009 13:30:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Verizon Wireless, a joint venture of Vodafone Group Plc (NYSE: VOD) and Verizon Communications Inc (NYSE: VZ), is in talks to acquire Alltel Corp. in a deal valued at about $27B, the Wall Street Journal reported. If successful, the combined companies would create the largest cellphone company, and would be better positioned to compete against AT&T Inc (NYSE: T).
• Gregory B. Penner, the son-in-law of Wal-Mart Stores Inc (NYSE: WMT) chairman S. Robson Walton, is expected to join the company's board of directors, a move seen as the beginning of a leadership change at the company, according to the Wall Street Journal.
• The Financial Times reported that Singaporean sovereign wealth fund Temasek refused to provide funds to Bear Stearns shortly before Bear's sale to JPMorgan Chase & Co (NYSE: JPM). Temasek reportedly refused the request for practical and political reasons.
• Russia's Interior Ministry questioned the head of BP Plc's (NYSE: BP) Russian oil venture as part of a criminal investigation into possible large-scale tax evasion, the Financial Times reported.

Newspaper wrap-up: Verizon Wireless may acquire Alltel originally appeared on BloggingStocks on Thu, 05 Jun 2008 08:15:00 EST. Please see our terms for use of feeds.

The Treasury and some members of Congress are concerned that sovereign funds from the Middle East and Asia may use their investments in US banks and corporations to push their global political goals. Treasury Undersecretary for International Affairs David McCormick said the government-controlled funds may raise "legitimate national security concerns," and may distort markets if not managed properly, according to MarketWatch.

If the large funds walk away from investing in the US, especially when banks and brokerages may need more money to weather the credit crisis, finding large pools of capital may be difficult.

But, one sovereign fund, Singapore state investor Temasek, appears to be willing to agree to make official its intention to put money into US companies for only "financial" reasons. According to Reuters, "A Temasek Holdings executive told a U.S. House of Representatives subcommittee that it supports the aim of U.S. lawmakers to maintain the right balance between national security and investment flows."

Continue reading Temasek, one sovereign fund, backs down

Temasek, one sovereign fund, backs down originally appeared on BloggingStocks on Thu, 06 Mar 2008 10:20:00 EST. Please see our terms for use of feeds.

Continue reading General Electric buys Merrill Lynch finance units

General Electric buys Merrill Lynch finance units originally appeared on BloggingStocks on Wed, 26 Dec 2007 12:45:00 EST. Please see our terms for use of feeds.