Thursday, November 26, 2009

PKFZ USD 1 Yard Guarantee.....A Coverup for A Massive Security Fraud

To The Stupid MOF, BNM Gov & SC Chairman.....

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.”

Sunday, November 15, 2009

National Language Literacy Rate?

When I started this long journey....

I actually think that we have failed with our "experiment" with national language and even propose to have a National Language Failure Index be created and monitored annually...

As a man of numbers.....besides economics and financial data.....my current interest revolves around Education and National Language Data of Malaysian population....

here are some of my wish list.....
  1. National Language Literacy Rate by Each Race and Age Group
  2. % Enrollment by type of School (National Vs Vernacular) by each Race this number is to be derived from the Total School Going population of each race by Year of Enrollment
  3. Evolution of Vernacular Schoolkids broken down into migration to National School, Private Vernacular School, International Schools (Local/International) and its corresponding dropout rate- this number should then be analysed in terms of their overall performance in comparison to National School Kids in Bahasa Malaysia, English and Maths/Science subjects (to check PPSMI actual performance)
  4. Further evolution of this numbers into how they progressed after SPM broken down by Those for STPM, Matriculation, Private Colleges (Domestic & International) and the dropout rate for both National and Vernacular Stream students
These are the basic requirements for all of us to start talking with Credible data in tackling the Single Stream.......when I talk about credible I don't mean statements by Politician or Interest Group......I want hard facts with numbers and how those numbers are derived.....

As an initial feeler....have a look at this Unesco Data on IlliteracyThat was 1957 and the numbers were not broken down by race........I wonder how high is the current % of Citizens who could not communicate in the National Language and of what race/primary education background are they?

I wish that the Government is more serious about dealing with this matter instead of just issuing statements without any credible facts........

errr....Muhyiddin.......when you are more transparent with the real data, your eventual decision on how best to progress will no longer be in the "pancing undi" mode.....

Talk cock time is over people......lets face this one head on.....

Saturday, November 14, 2009

My Prayers for the SSS Patriot

Just got back from the wilderness.....saw my inbox.........

Bro Wah-Al Subangi the facebook SSS ambassador suffered a ruptured coronary artery
(details about how you can contribute go here)

In the comment thread I noticed Dato' Shamsuddin Haji Nawawi of Small Talk offered to assist with a letter of guarantee for Wah's operation.........Macho la lu Dato....ini macam punya orang gua tabik spring...

My prayers for his speedy recovery....

UPDATES by Bro Singh:
Wah was sent to OT at 12 pm yesterday and surgery was conducted until 8pm, IT WAS SUCCESSFUL. Alhamdullilah. He is now stable but still disoriented due to anesthetic.

Thursday, November 12, 2009

Census 2010 + 1 Additional Question = "Referendum" on Single School

Ini MOE memang takde telur....gua cukup menyampah dengan politician

Ni la peluang nak betulkan benda yg dah 52 tahun silap, pun cari jalan nak belit belit.......

Ini macam la pakcik.....gua kasi same lu free of charge recommendation on how to solve this once and for all........plus my recommendation ini pun takkan menyusahkan sape2.....nak buat pun senang gile babeng

Tambah satu soalan dalam Population and Housing Census 2010

Adakah Anda Bersetuju dengan Sekolah Satu Aliran untuk Sekolah Rendah dalam rangka memupukkan perpaduan rakyat berbilang kaum di Malaysia : Ya atau Tidak

ini DOS pun sudah canggih gile pakai technology sane sini takkan tak boleh nak print satu soalan lagi kut?

kencing la gua lagi........nanti gua pelempang lu bisu tujuh keturunan


Wednesday, November 11, 2009

EPF CIO????

I baca with interest the latest post by BigDog

His focus was more on Zaki .........to me that dude is a gone case....I don't understand why he is still around......

My bigger concern is the CIO position of EPF...this was extracted from the Star

"Sources said Shahril’s appointment as CIO of the retirement savings fund, which currently has over RM350bil in its coffers, would help expand EPF’s investments beyond the traditional asset classes of Malaysian Government Securities, loans and bonds and equities.

Historically, property made up less than 1% of the fund’s total investment portfolio.

“It is hoped that Shahril, given his experience in turning around and driving the property group over the years, will be able to steer and expand the fund’s investment in property as well as private equity, areas it has long wanted to expand into,” one source said."


Its domestic exposure is pretty large and faces a very high reinvestment risk of coupon incomes and also the incoming contributions in the next 10 years la... since our Super Freak Finance Minister have claimed that our income is gonna double by 2020...... guano mung ni Jib koho lamo koho napok bengong

What can this guy bring to the table in terms of Global Investment Strategy? in order to reduce the concentration risk of domestic exposure, taking into account the global imbalances....

Was MRCB an Investment House with a consistent track record of beating some form of Investment KPI like an Index?

What is EPF Investment Strategy does it plan to be more quantitatively driven into sexier(riskier) asset class? If the portfolio allocation for real estate is gonna be say 10% of total portfolio can this not be done via Outsourcing of the Portfolio Management Function to the professionals?

Why cant EPF move towards more outsourcing of its portfolio management and investment activities to the Domestic Fund managers and build proper portfolio monitoring system to track their activities according to the respective mandates?

Why cant EPF be the largest Lender of Security considering it is the largest holder of most domestic securities......the lending income alone can be pretty huge........

Coming back to the position....what can a Head of A Domestic Property Developer bring to the table besides meeting the basic statutory 4% rate? n watch out for his salary package is it gonna be tied to the portfolio performance.......will he be willing to take greater risk so that his pocket gets bigger while EPF depositors shoulder the full risk?

Nasib baik gua tak contribute to EPF....

Tuesday, November 10, 2009

FOR SALE: MV Agusta.....Idiot Buyers only

Barely 14 Months after Harley bought the Company...it is now up for sale

For some basic background on the company go here

This monkey thinks that there is something strange with the whole scheme of things, first the proton sale, then BWM and now Harley......

OK la with Proton maybe sudah kena kencing but BMW and Harley pun kena kencing with the owners ka? For Harley may they are cash-strapped....

Out of the whole exercise what value did BMW and Harley get....gempak sangat ke technology MV Agusta ni? Dah la motor dia mahal gile........who in the right mind wants to ride such an exotic bike....spare part gile babi punya susah......

Stupid rich people maybe?

Direct Market Access Anyone?

Press release by Bursa
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9 Nov 2009
BURSA MALAYSIA INTRODUCES DIRECT MARKET ACCESS FOR EQUITIES MARKET TO ENHANCE TRADING EFFICIENCY AND ACCESSIBILITY
Bursa Malaysia today introduced Direct Market Access (DMA) for the equities market which is aimed to enhance trading efficiency and accessibility for market participants. With this, the Exchange will be providing a complete DMA infrastructure for both the equities and derivatives markets. The DMA for derivatives market was successfully launched in April 2008.

Bursa Malaysia Berhad’s Chief Executive Officer, Dato’ Yusli Mohamed Yusoff said, “DMA is a critical component for Bursa Malaysia to remain competitive in the global investment arena. We are committed to investing in the right technologies to promote market accessibility and liquidity, as well as increased trading efficiencies. This will enable us to meet the requirement for growth and alignment with international trading practices.”

“We are confident that similar to our experience with DMA derivatives, DMA equities will attract new segment of trading participation given its increased accessibility and low latency. Market participants will also be able to enjoy greater connectivity and more control of their orders via the DMA infrastructure for equities market,” he added.

The benefits of DMA:
  • It is a ‘zero-touch electronic trading’ solution which enables investors to route orders directly to the Exchange for immediate execution.
  • It will significantly reduce the time for orders to be sent and matched from the previous average of three (3) seconds per transaction to a fraction of a second.
  • It has the ability to support algorithmic and block trading which allows institutional investors greater control through using pre-determined order conditions.
  • It provides greater access to international investors as Bursa Malaysia allows ‘Sponsored Access’ for institutional investors.
  • It enables market participants to connect their own trading front-end to the Financial Information Exchange (FIX) DMA Gateway.
  • It allows market participants to install their own servers in the Exchange’s data centre through the co-location hosting service where faster order management can be processed and lower latency when trading.
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Just some notes on this development :

The US Sec is already questioning the "Sponsored Access" and is planning to come out with more regulations to ensure that proper controls are in place especially when Non-Regulated Entities are accessing the Public Market directly......

This is what the SEC Chairman said

"I liken it to giving your car keys to a friend who doesn't have a license and letting him drive unaccompanied," Schapiro said at a Wall Street conference in New York.

I don't know the specifications on Bursa's project nor the respective regulatory guidelines but just some concerns:

  1. How will limit management/exposure management function at Individual Brokers be? Assuming sponsored institutional investors can now access market directly via high-speed algorithm trading, how will their open orders/matched trades be validated against their limit or collateral pledged at the clearing members? Or will they have to pledge collateral at the Clearing Corporation in return for DMA?
  2. How does this fit into the picture of regional exchange alliance whereby the respective ASEAN Exchanges have entered into a potential commitment with a Vendor to undertake a massive intra-exchange order routing? Will the DMA allow for another exchange to connect directly to Bursa and if so why do the order routing project in the first place because two way traffic can be achieved via bilateral arrangement as and when each exchanges are ready instead of going for a big-bang approach when the ultimate beneficiaries are the Singaporean Intermediaries since all the largest global funds are based out of there with close to USD 1 Trillion of Asset Under Management?
After the demutualisation of Bursa Malaysia the underlying relationship between Exchange and its members technically moves into a potential competition environment whereby members are no longer obliged to match trades on the exchange and sustain exchange monopolistic environment, globally exchange business is a dying business and they need to compete with other matching mechanism for example Alternative Trading Systems or even its members who are internally matching its trade without routing the trades to the exchange or what some people are calling "dark liquidity"....that itself is another issue altogether

Well Mdm Zarinah would love to hear your tots on the matter....




Minds are like parachutes; they work best when open. -Lord Thomas Dewer