Remember last year, when the sovereign wealth funds were going to save us? Cash rich foreigners were going to pump billions into U.S. corporate giants, propping them up until the economy revived.
Not so much, as it turns out.
The New York Times reports Singapore’s sovereign fund Temasek lost $39 billion between March and November–an ouchy 31 per cent. About $2 billion of that came from its bottom-fishing $5.9 billion bet on Merrill Lynch.That stake got decimated when the Wall Street giant got snapped up by Bank of America at Hank Paulson’s yard sale.