All of you are a bunch of idiots & pandai mau sapu sampai masuk bawah carpet............lu ingat gua tak tau apekebenda lu mau cover......
This is what i wrote in 2007 when i first started blogging....
Guarantees by Govt are ticking time bombs . Suggest someone do an analysis of how big this mess is should the Guarantees come into effect. How will it hit the gov budget.
You can start with the Term Sheet or offering documents in the SC website ...but must read the fine print on specific covenants especially potential "put" option against the government.
This is a problem which have been brewing for a long time... BNM should know about this and have been studying the potential impact to the system.......breeding too big too fail institutions into our systems
What is the criteria for the gov to provide guarantees to private sector. How is the economic benefit considered for the gov to extend the so called guarantee...?
One thing i dont understand is how in the world does a default by one company can create systematic risk to the banking system? Does not make any sense at all ...4.5 Billion is small compared to the outstanding loan in the banking system...unless one particular bank is overexposed ..then again they should have single customer limit to begin with...
next question is it a direct loan or a bond? if direct loan what is the collateral ? if bond what is the right of bondholders in the event of default.....
So folks put on ur thinking cap...why does the government need to bail out this company? Does it pose any systematic risk to the financial system? Is the project so strategic that it tantamount to failure of the Selangor Economic System.....i dont think so....
In the market economy....companies are bound to fail and financial intermediaries should understand the risk involved in financing such a venture....and government should not get involved apart from taxation incentive.....
This is a classic case of good money chasing after bad money
And for FM2 Nor Yaakop to give out a vague statement like that is unacceptable......
BNM on the hand are prudential regulators i.e. if the shit hits the fan in the banking system ...everything must be done in a hush hush manner in order to stop any potential bank run which will affect public confidence......so expect no statement from Zety
We need answers soon on how the initial project was financed, the terms, the institutions involved....if an idiot made a mistake along the value chain to "think" that it is a Gov Guaranteed Bond....look again...study from the beginning ...just follow the money.......if it was gov guarantee it should have been traded at a quasi government levels.....market seldoms misprice a "govt" risk.....so was the market unaware.....last i heard the whole issue is messed up from the initial placement up to its secondary market activity which lead to clear cut securities fraud involving some of our bankers......SC n BNM prodded into the case but never went on to further...this is what happen when u sleep at the switch....
And now this backdoor USD 1 Billion retrospective Guarantee is "issued"
I can only say WHAT THE FUCK!!!
Plus does it even make any sense ka..... are you altering the offering documents or term-sheet which is the "contract" between the BondHolders?
Listen here Najib and the rest of the Dunggus....
If some fuck brain from the Transport Ministry messed up by issuing a "comfort" letter that was misinterpreted by a STUPID rating Analyst from MARC (then they were not regulated by the SC nor the BNM).....
Look at what the mother fucker's boss said here
"If a letter from a government body which commits the government to a contingent liability has not adhered to the standard government procedures, it is a lapse of the government machinery and should not be viewed as a lapse in rating process," said Sandeep Bhattacharya, Head of MARC's Project and Structured Finance Ratings, in the statement.
Woi lancau.....are you saying that your rating process standard operating procedure does not say that Gov Guarantees can only be issued by the Ministry of Finance?
Another lancau in the equation is the Malaysian International Merchant Bankers Bhd who acted as the lead arranger in the bond issuance........as a blardy fucking lead arranger you should have undertaken your role to properly do the due diligence on the corresponding documents.....
One thing this monkey want to know is the issuance date of the "comfort letter" before or after MIMB and MARC was engaged to structure the deal..........if this was done specifically to structure the deal so that it can get the necessary rating then something is definitely not fucking rite there....
During issuance if i still remembered correctly.....this stupid paper was priced macam sial so that a lot of bankers in town boleh sapu beratus basis point on this shit........and there was even a securities fraud case between Deutsche Bank Dealers and Bank Bumi involving the same fucking shit.......ever wondered why none of this was in the papers? Go and ask Zarinah and Zety..
Let me ask you one thing la jib......
If you allow the SPV to go into a "technical" default of the Bonds.......Will the World Assume that the Government of Malaysia have defaulted????
And when the bonds do go into a distress credit situation...how many cents to a dollar do you think they would be worth?
That is when you BUY the bonds la fuck brain......and solve this mess at a fraction of the cost
PAC if you are reading this post.....get MARC, MIMB, the Issuance Division of Sec Commission, the Monetary Operations Team of BNM and find out further about the whole scheme...from Pre Issuance Process, the Issuance and the Trading of the Instruments..............follow the fucking money......don't stop until you get every single ringgit extracted......
Out of this sad news....adela jugak benda kelakar...
“There is a huge incentive for the government to solve this issue. The port bonds carry an A1 rating which is the same as sovereign bonds,” the fund manager said.Ini bodoh gile punye fund manager.....those putting your funds with him better withdraw tomorrow.....mana sekolah lu belajar A1 rating = Sovereign Risk.....
UPDATES 1 Dec
If you are following the international news on Dubai World which is a "quasi-government" entity in "technical default" situation....check out how their MOF is dealing with the issue
“It is correct that the government owns Dubai World, but the decision when it was set up was that it should receive financing based on the viability of its projects, not on government guarantees,” Abdulrahman Al Saleh, director general of the emirate’s Department of Finance, said in an interview with Dubai TV, when asked whether the government was backing the debt. “The lenders should bear part of the responsibility.”