Merrill Lynch grabbed the biggest financial headlines while you enjoyed your yuletide festivities. The bank, like many before it, announced it needed a multibillion-dollar bailout to stay afloat, and consequentially scrambled abroad for SWF capital.
The bank announced it would raise over $6 billion in the near future, $4.4 billion of which will come from the Singaporean sovereign wealth fund Temasek.
Ironically, we were surprised to hear the remaining funds were originated on American soil. U.S. firm Davis Selected Advisors will snatch up $1.2 billion of Merrill common stock, while Outstanding Investments pick GE has agreed to buy most of Merrill’s commercial finance biz, Merrill Lynch Capital.
1 comment:
what does this mean? (capital coming from US to buy 1.2B MER stakes)
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