atans1

HoHoHo: Ho’s rogue bank woes (Cont’d)

In Banks, Emerging markets, Temasek on 14/01/2019 at 10:00 am

GST sure to go up leh. Jialat for PAP govt and us.

Ex-Standard Chartered banker prepares to plead guilty in Iran case
Emerging markets lender under investigation for alleged sanctions breaches

FT headline

Goes on

Although no formal charges have been brought, an internal Standard Chartered investigation found at least one of the bankers under scrutiny was receiving secret kickback payments, one of the people said.

If the ex-employee does plead guilty, it would be one of the few instances of an individual banker being successfully prosecuted in the US over sanctions abuses.

Depending on what the former employee says in any plea deal, an admission of guilt could put Standard Chartered in a weaker position in its negotiations with regulators and enforcement officials, who are seeking to impose fines of as much as $1.5bn on the bank, the people said.

So why GST sure to go up?

The potential fine could complicate the bank’s plan to return capital to investors for the first time in a generation, details of which the bank would like announce alongside its strategy update and full-year results at the end of February, according to people briefed on the proposal.

Ho Ho Ho.

Fyi, over the last 10 years, Singapore’s net investment returns (NIR) contribution (NIRC) to the Budget has more than doubled from S$7 billion in FY2009 to an estimated S$15.9 billion in FY2018.

NIRC consists of 50 per cent of the Net Investment Returns (NIR) on the net assets invested by GIC, the Monetary Authority of Singapore and Temasek Holdings and 50 per cent of the Net Investment Income (NII) derived from past reserves from the remaining assets.

In other words, we spend 50 per cent of the estimated gains from investment, and put the remaining 50 per cent back into the reserves to preserve its growth for future use.

Associate Professor Randolph Tan is Director of the Centre for Applied Research at the Singapore University of Social Services, and a Nominated Member of Parliament.

Under PAP rule will S’pore become like UK or Venezuela?

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  1. NIR is based on tea leaves forecasting (ever since they changed the formula), and hence can be subject to political influence or convenience. Much like what Trump is trying to do to the Fed.

    In this election year, expect the reported NIRC to still be on the high side, to justify all the ang baos to be given.

    But after GE, be prepared for reduction in NIRC & this being used as poster for PAPies justification for 9% GST (together with 1/3 of Sinkies becoming >65).

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