The Anti Neo-Democracy Theorist

Peace, Freedom and Happiness to one and all!

Not quite sure what to make of this 10 billion rescue package given by GIC to UBS? Is it really worth 10 billion to obtain a 9% share in UBS, given that the GIC might not be able to get even one person on their board? Shouldn’t there be parliamentary debate at least on such a huge package? Would a debate in parliament not clarify some of the issues that people might have? For example, the relationship between the sub-prime crisis, the long term prospects of UBS and such a bailout by GIC? More clarification could be the key to understanding this bailout of the Swiss Bank. In addition, would people try to link this $100000,00000 package to the less than $300 given to low income households? That would be unfortunate considering that some of my friends in the financial sector considers this a pretty good deal and argue that not much debate is needed at all. I personally hope for more data points by the government and even UBS to “understand the extent of the goodness of the deal.” Blind faith might not be as good as informed faith. 

Wall Street Journal

Singapore to the Rescue
December 11, 2007

UBS yesterday announced the biggest loss by a European financial house from the subprime shake-out, and brought on a sovereign wealth fund to save the day. The Swiss house’s stock went up. As in Citigroup’s similar recent deal with Abu Dhabi, we don’t find a whole lot to cheer here.

The mortgage crisis makes for strange bedfellows. In the latest installment, GIC, the Government of Singapore Investment Corp., offered up 11 billion Swiss francs (€6.6 billion or $9.74 billion) to UBS. If shareholders sign off in February, GIC’s current 1.1% stake in UBS will rise to about 9%, making the fund probably its largest shareholder and possibly landing Lee Kuan Yew, Singapore’s founding prime minister, or his son, Lee Hsien Loong, the city-state’s current leader, on the bank’s board. The men are, respectively, chairman and deputy chairman of GIC. Another undisclosed Middle Eastern investor will inject an additional two billion francs.

UBS Chairman Marcel Ospel said he’s “delighted to welcome these new long-term strategic investors.” The markets seemed equally so as the bank’s shares ended up 1.4% in yesterday’s trading. But the problem for UBS and other big financial institutions is that sovereign wealth funds are no ordinary investors. State-controlled and often opaque, they are driven by different motivations than private investors. Politics may trump business interests. Who knows.

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Photo Credits: AP and BBC

Any Anson Chan in Singapore’s opposition?

It seems that one of the important variables for the opposition to do well in Singapore, besides a more level playing field, is the calibre of its candidates. Would we see disgrunted elites/top civil servants in the Singapore system have the courage (perhaps reckless confidence) to join a resurgence party like the Workers’ Party? Of course, one can question whether they would think WP is good enough (or even surging for that matter) for them? Or maybe they would set up their own party or ran as independent candidates like Anson Chan? How would the PAP react to these candidates? How would the media portray them? Or does it boil down to more level playing field again?
All things being equal, would Singaporeans be willing to choose a credible opposition candidate over a similarly credible PAP candidate?
Or is it more of a party identification issue?

BBC News

Democracy champion wins HK poll

The pro-democracy candidate and former colonial official, Anson Chan, has won a key by-election in Hong Kong. Ms Chan came out of retirement to campaign for full democracy in an election that was being seen as a test of the political mood in the territory.

Ms Chan wants the chief executive to be directly elected by 2012. The post is currently decided by a committee, many of whose appointees favour Beijing.

Anson Chan stood against China-backed Regina Ip and six other candidates.

Ms Chan won a seat in Hong Kong’s legislature after receiving 175,874 votes, or about 55%, of the vote, which saw a record turnout. Her closest rival Regina Ip received 137,550, or about 43% of votes.

Ms Chan said the result “indicates that Hong Kong people are anxious to put forward democracy… I’m sure that the [Hong Kong] government and [Beijing] government would wish to listen to the genuine voice of Hong Kong people.”

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