UOB – The solid local bank

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An honorable member of the Coffee Shop Has Just Posted the Following:

http://mysingaporenews.blogspot.sg/2...ocal-bank.html

Wee Cho Yaw has spoken, UOB will grow organically and will not join the acquisition frenzy. Neither will UOB join the ‘foreigners are talent’ fad and go on a mindless recruitment to replace local talents with foreign ‘talents’.

Many banks with foreign CEOs are impatient to prove their worth and to justify their fat salaries. Acquisition to grow the bank is a simple way, instant trees, instant fat. The only issue is the cost. But many would not mind paying the Singapore Premium in the acquisition trail. What is the problem? Everything is OPM and if the acquisition is successful, more salary hikes and bonuses. If fails, it is OPM, just take the golden handshake and walk away. It is simply head I win, tail you lose.

Mercenaries have no qualms about spending OPM to make that strike. They need to justify their worth and pay fast. And they work to make sure they get more pay and fast. They invest for quick profit.

Another type of mercenaries is the fund managers. They invest because they have too much money in their war chests, all OPM. They can’t keep their money in the biscuit tins. They must put them to work, to work for them and for the shareholders. When fund managers invest because they need to invest and not when there is a good buy, you can be sure they will invest even in shit.

Wee Cho Yaw said it, UOB would look out for opportunities but only when the buy fits and the price is right. He is not going to be a bloody fool paying huge premiums just to join the bandwagon and be on the news that UOB is also doing the right thing. A solid conservative banker does not gamble with his money and has no need to rush to spend it. Every cent he is spending must be meaningful, not eventful.

And UOB is going to be a local bank and would not be open to the exploits of foreign mercenaries. He has appointed Hsieh Fu Hua to replace him as Chairman. He is not angmoh or foreigner crazy. He does not have a crush like an 18 year old going gaga with anything novel. This is a solid banker that runs his bank like a bank, not a casino.

With a local talent team, is the UOB doing less well than those under foreign mercenaries?


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