Posted by: bigtalksingapore | August 28, 2008

Singapore banks busily raising money through preferred share ?

Seem like there’s a buzz going on in Singapore financial sectors.
One banks after another are coming out to sell their preferred share to raise money.
The question is “To raise money for what ?”.

I can think of a few possibilities below…

  1. There have been some heavy write down of US sub prime bad debts. So they needed money to replenish their cash to prepare for a cashflow problem.
  2. They need to increase cash influx to push up their next financial report and make it looks nicer to investors and shareholders.
  3. More banks in US are facing closure situation (Attachment #2), it may spread to Singapore if that happened. Singapore banks are speculating a tighter time ahead and their public share may go down. So they are trying to get as much cash from the public as fast as possible while the situation allows, before it turn sour.
  4. They could be also raising money so that they can prepare to go into the US market to grab some cheap stuffs off their stock market. Hopefully, they can recoup some of their losses from the sub prime crisis.

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Related Blogs…

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Attachment #1: Today, 28 August 2008, Page B2

Attachment #2: My Paper, 28 August 2008, Page A17
Attachment #3: Strait Times, 28 August 2008, Page B21

Attachment #4: Today, 11 Sep 2008, Page B2

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