Friday, December 21, 2007

Singapore Sling

Merrill Lynch is the latest US financial institution to go hat in hand to a state investment agency:

HONG KONG (MarketWatch) -- Merrill Lynch & Co is in advanced talks to receive a $5 billion cash infusion from Singapore's state investment company Temasek Holdings Ltd., becoming the latest among a number of blue chip Wall Street and European financial institutions to receive funding from Asian or Middle Eastern government funds in the wake of the ongoing turmoil in structured credit markets, according to a media report Friday.

I see this as further confirmation that the bottom is not yet in for the financials. I don't see government bureaucrats as savvy investors.

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