UPDATE 1-Singapore's GIC may invest in more banks - TV

miércoles 30 de abril de 2008 07:18 CEST

(Adds quotes, background)

SINGAPORE, April 30 (Reuters) - The Government of Singapore Investment Corp may invest in more banks in Europe and the United States if it gets the chance, adding to its stakes in beleaguered bank UBS and Citigroup, its chairman told Bloomberg TV.

"If there are other banks of the quality of the two that we bought into, with the promise and the capabilities and inherent capabilities to recover, we have got the liquidity to meet it, to make such an investment," GIC Chairman Lee Kuan Yew told Bloomberg TV in an interview broadcast on Wednesday.

"We are buying something that we intend to keep for the next two to three decades and grow with them", he said, adding that GIC was a long-term investor.

GIC, one of the world's largest sovereign funds, invested about $11 billion in UBS UBSN.VX and Citigroup (C.N: Cotización) after they wrote off billions of dollars in the wake of the credit crisis in the United States.

Its sister fund, Temasek Holdings [TEM.UL], which is run by Lee's daughter-in-law, pumped $5 billion into Merrill Lynch MER.N.

The two Singapore funds have since seen the value of their investments shrink with UBS shares falling about 35 percent since GIC first announced its plan to inject funds into the Swiss bank by buying mandatory convertible notes.

Lee defended the investments saying Singapore had bought very good franchises and brand names that would recover in time.

GIC measured its performance over five to 10 years, he said.   Continuación...