8/28/2017

What, US$10 billion only?

The Malaysian govt is conducting an inquiry into the forex losses by the central bank in the 1990s. What is amusing is that the former assistant governor of Bank Negara Malaysia, Datuk Abdul Murad Khalid was quoted as saying, ‘After I gave him the explanation, Anwar commented that should the true figures of the forex losses be revealed to the public, he would have to resign as finance minister.’
 

What, a finance minister would have to resign all because the central bank lost US$10 billion in forex trading? How can? Firstly the trading was not done or conducted by the finance minister but by professional traders and bank managers. Why should the finance minister be held responsible and had to resign?
 

Secondly, the trading personnel were just doing their jobs, though coming up losers, they were honest mistakes. Any fund managers would have such bad days and lost their pants once or several times in their life time. They are doing everything legally and professionally. Why should anyone be held responsible for the loss and of all the people, the finance minister?
 

Thirdly, it is rare to have fund managers with such experience, losing billions. The experience is invaluable and should be seen as a credit, not that it is something to gloat about. At least such experienced people, very rare to come by, would know how to avoid making the same mistakes again. They are invaluable. They should be promoted and given bigger bonuses to retain them in the banks. The experience is paid by a heavy price. Even if they cannot perform any better, they can be paraded around as living examples of people that lost billions for the country, people that lost the country’s national reserves.
 

Fourthly, if someone is to answer for the losses, pick a scapegoat at the lower level management. QED.
 

Fifthly, this happened in the 1990s, over, passé, why bother to bring this up again? This is water under the bridge. It is time to move on.
 

The Malaysian govt cannot be accused of wanting to make use of this incident to gain political mileage and to slaughter a few political enemies right? What is US$10 billion? Peanuts!
 

Sixthly, where is the mirror? Look into the mirror for the bigger culprit.
 

The daft Americans have sacked the Commander of the US 7th Fleet, Vice Admiral Joseph Aucoin, for the two accidents involving American destroyers. How stupid can the Americans be when the Commander was not driving the destroyers directly but sleeping in his office in HQ? He has nothing to do with the accidents. Just sack the Commanders of the destroyers would do. And to think about it, a Japanese Commander would have committed hara kiri in similar incidents.
 

So impractical, so daft. They would lose all their talents doing such silly things. Or no one would want to be commanders when they are held responsible for the mistakes of their subordinates.

21 comments:

Anonymous said...

Malaysia is juz Wayanging cos election coming & to distract the voters ..such r Nanjib tactics Lah..sacking of those in high office is unlikely to occur in Sinkieland cos Ah Long need these loyalist admirers or yrs men to keep his seat warm..

Anonymous said...

Rb //Thirdly, it is rare to have fund managers with such experience, losing billions. The experience is invaluable and should be seen as a credit, not that it is something to gloat about. At least such experienced people, very rare to come by, would know how to avoid making the same mistakes again. They are invaluable. They should be promoted and given bigger bonuses to retain them in the banks. The experience is paid by a heavy price. Even if they cannot perform any better, they can be paraded around as living examples of people that lost billions for the country, people that lost the country’s national reserves.//


Lmao ...

Uncle,

R u having some other boLEE in mind?

The Dragonfly said...

RB, Good write-up, irrespective of whether Malaysia wayangs or not. This is an eye-opener, though $10 billion is peanut when compared to the $150 billion combined losses by Ho Jinx and JLB Tony during the Asian Financial Crisis. By now, if the books are opened, I am quite sure the losses would have accumulated to at least $300 billion.

Anonymous said...

Here are a few mis-conceptions worth thinking about.

1. "Investing" is safer than "trading"
- Really?
- Why not you ask GIC and Temasek about the safety/performance of their long term investments?

2. There is no difference between: "Gambling" & "Trading" & "Speculating" & "Investing"
- they are all the same thing
- you risk money in the hope of making more money
- But Singaporeans are willing to pay a high salary to hire an "investment" manager but not a "Gambling" manager.

3. One of the "key" skill set is the "loss management process"
- does the manager have such a process in place?
- does the process have a clear "exit" point when losses start to mount?
- is the "exit process" automated or is it dependent on one person or on a committee?
- does "national politics" interfere with the "exit process"

The Dragonfly said...

Malaysia has set the precedence.

Future govt of Sinkieland can also follow by digging up ancient history and pin it onto those who play with other people's money, especially the sweat and blood money of the life-long CPF savings of millions of poor, powerless, voice-less commoners who trusted wolves to look after them. This score must not be forgotten.

The downfall of dictators always follow with very serious consequences. Look what happened to Sadam Hussein, Gaddafi, Marcos, Pol Pot, et al?

Anonymous said...

Be like Nick Leeson and write a book, 'How I lost billions'. Sure top seller. Can be used as a reference book and case study in MBA programmes.

Virgo49 said...


The Daft 70% must wake up and have endless juicy tales of what's happening behind the Scene or what Raja Petra Kamaruddin said behind the Corridors of Power if they just put in a CORRECT and Daring and Knowledgeable Person to grill those in the Past.

Now, you have the same Inner Circle of cronies sabotaging each other when they are now in different camps vying for Powers.

They will disclosed their darkest and damming secrets of each other just to kill and be on.the TOP.

Think this will happen in Sinkieland??

No perpetual enemy.or friend in.the world of politics as well as the Human.Realm.

Speculation of OYK been favoured over Goldfish eye and CCS to be succeeding PM.Think safer bet CCS as more easily replaced for the third ruling Lee Dynasty

Goldfish eye now in.oblivion.OYK.a greater threat just like Muhhudin and Mad Hater. This guy great ambitions and also previously.old man.from.the other.camp.

So, have to be wary of Trojan Horse.

patriot said...


Haha......

Lost Billions and got paid multi-millions annually.

Knn, in Sin all kind of perversions get Sinful Remuneration and Emolument.
Pure Gaji Buta, leegalised Undeserved Rewards.

How sickening can it be?
Only a sick society works
in such perverse way.


patriot

Anonymous said...

hi patriot 10.10am

you may be 1oo% correct,,,,

but no use,,,,

70% voters Ok-Ed!,,,,

this pee-sai is like that lah,,,,

no point, can only kpkb, what can you do,,,,

so just 3Ms and be happy and worry less,,,,

cheers,,,,,,,,,,,

Anonymous said...

Why is there no rotation of personnel?

In Philippines, maximum only one term for President. In US, maximum 2 terms.

Even in banks, personnel must go for mandatory 2-week leave so that somebody else covering the duties could uncover irregularities.

There should be maximum tenure limits for those in charge of public money.

Reporting, custody, control functions should all be separated.




Anonymous said...

/// Speculation of OYK been favoured over Goldfish eye and CCS to be succeeding PM.Think safer bet CCS as more easily replaced for the third ruling Lee Dynast ///
August 28, 2017 9:32 am

I am Paul Lampard.
long time supporter of Goldfish eyes.
Do you think it's time to switch horses and join OYK or CCS?
Who do you think is a more competent yes-man for the emperor to screw over?

Political Satire only hor.
No need to call me to lim kopi.

Anonymous said...

10 Billions usd loss is a small figure? Malaysia s net exp-imp is around 10 billions 225 millions usd (0.225 billion). 10 billions is not small to Malaysia.
Malaysia has big land mass with lots of resources. The next export is shaky to run into deficit. How they drilled 10 billions losses is something worth reading about. This is similar to reading Nick Neelson s derivatives gambling.

Neelson revealed he was allowed to gamble by London head office. He was no high ranking officer at sinkieland office. If alert sinkies read this sentence, they will know how to deduct the meaning of " senior management". The bunch of high salary collectors simply mind their business and ignore the big drilling to lose the whole Bank away. Malaysia s story cannot be too far from Neelson s experience.

Not too far away from Malaysia, one city revealed losing on May 17 2017 ST lost USB 4 billions on a share bet. This city has current account around USD 15 billions.

Current account means earning foreigners s cash by selling goods to foreigners. If current account having negatives means keeping buying and not selling well. A company will go broke. A country may devaluate its currency value. But losing cash on fx or share gambling is not reflected on official figures. No need to worry about the immediate impact. Keep gambling non stop is ok as honest mistake will cover for it.

How about borrowed money to spend by these 2 places. The govt must return them when due. Haha. This is the catch. The city alone owed 467.4 billions USD.
The causeway other side owed 187.5 billions USD, CIA factbook 31 dec 2016.

Owing 467 billions need to pay or not? These is internal debt ie borrowed from residents. Not to get the picture wrong. Increasing large number of PR will draw away the cash when going home. If all go suddenly at war or terrorists attack, then how? The gambling losses plus heavy borrowing is what sinkies voted for. They need to think for their children: how to pay for the huge debts while the salaries are so small. The govt will tax on the children will more creative terms like sugar taxes. Future will have salt taxes, hawker foods taxes, food court foods taxes. No one can escape for the lavish spending already spent.

The sinkies are not concerned even with huge debts facing them. The give jobs for foreigners to take up. Leong said new PR has 61k, new citizens has 42k, job created between 2015-16 was only 11k.

Even sinkies citizens want to work to gain cpf to help the govt to pay, they are not allowed. The debts will keep increasing in CIA fact book. Those looking at the figures will be concerned on the yearly ballooning figures, plus the gambling losses on shares using public cash. End results: more taxes on sinkies who voted for the rulers to screw them non stop.

Virgo49 said...


Anon 11.38

Easier to ask to move over!

1) Goldfish Eye Heng 2) CCS 3) OYK??

Think first two- One with previous stroke. Not a fighter. Two with monies enough can pick cardboards for exercises.

3) OYK- wah, penetrating eyes. You think I abdicate so easily???

Chua Chin Leng aka redbean said...

Good idea. Hawker food, fast food, foodcourt food all unhealthy. To discourage people from eating these unhealthy food, introduce tax on unhealthy food. It is for the good of the people, the health of the people.

Anonymous said...

Taxes on hawker foods and food court foods, sinkies will go JB to eat free.

Read one ass post, a JB restaurant put up. One atas looking couple ate S$25 at JB. They sneaked out not paying. The employees tailed the girl and found the couple used toyota camry skm 39fk6. They sped off on being discovered.

Sinkies are so taxed, they are desperate for few dollars wanting free foods.

Anonymous said...

Under the system of meritocracy, every citizen should know that someone of sufficient merit in his community can become President.

Khan looks the most Presidential !

patriot said...


Taxmen are shall rightfully be taxing the Hawkers correctly with cashless payment and or machine payment.

Some of the better off in incomes non-professionals are going to contribute more to society.

Cashless should be good for the Country.


patriot


patriot said...


My apology.

The Word are in my above comment is redundant and a grammar mistake.


patriot

Anonymous said...

Once payments are captured through digital mean, then Hawkers can no longer escape paying income tax. Plus those with high turnover of over a million has to charge gst and Can cost a lot of compliance cost

Anonymous said...

11.38 am, too late already. Likely will be knock on your door at night for lim Kopi session. If unlucky may Kena temp lockout with other hardcovers and Kena sodomised for nothing Lor so be careful ok

Anonymous said...

Lockup with other hardcores