Big loss from Singapore bank sale

Big loss from Singapore bank sale

Temasek, the Singapore state investor, sold its stake in Bank of America in the first three months of this year for a large loss, it has announced.

The group invested in Merrill Lynch before Bank of America took it over last year and before the credit crunch took hold.

Analysts said the bank no longer offered a global financial franchise.

The state-owned investor is now focusing on investments in Latin America and Asia in particular.

"It seems they feel the China growth story is better than the 'green shoots' of recovery in the US," said Song Seng Wun at CIMB Research.

Temasek has been hit hard by falls in financial stocks.

Its investment portfolio fell by 31% between March and November last year.

Bank of America posted encouraging first quarter results with revenue increasing to $4.1bn ($2.7bn) from $1.2bn a year earlier.

However, the US bank set aside $13.4bn to cover credit losses. It has also received billions of dollars in aid from the US government.

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