“DBS Bank apologised to customers yesterday after Monday’s big systems crash that left customers and businesses in the lurch and in the dark for about seven hours.” – excerpt and pic from the interactive Straits Times breaking story on 7 July 2010.
It was only days earlier that MM Lee had told an international audience that he personally preferred there to be only TWO big local banks instead of the present three (which were themselves the result of being whittled down from several more local smaller banks through mergers and such like ‘consolidation’).
Should one be surprised then if one day somewhere in the future on yet another appropriate occasion or platform, MM Lee or some other big guns were to pronounce their oracle that there ‘ideally’ SHOULD ONLY BE ONE?
Yet, to me the current DBS systemic meltdown points to a potentially disastrous and calamitous scenario when all our financial/fiscal eggs, as it were, are put into too few a basket. If DBS can fail spectacularly as it did on this occasion and in this respect and manner, so can the other local big bank too, if Lee gets his way. Murphy’s Laws say so.
The next round, it could be something even more spectacularly disastrous and catastrophic like a physical destruction by fire for example or a huge terrorist bomb completely destroying your hardware, brick and mortar housing them and the software in them. The fact is 9/11 has clearly shown that nothing is impossible or too difficult when there are people who are convinced enough and willing to strap HE on themselves for the purpose of blowing themselves and their perceived enemies to kingdom come.
Seriously, how seriously can we take the words of leaders, esp. politicians and their bedfellows when they are undeniably always speaking to influence you and I for the purpose of their private personal agenda and objectives.
New entry on 13 Jul 10:
Conrad Raj seems to share my thoughts on this matter.
Quote from his article:
05:55 AM Jul 12, 2010
Minister Mentor Lee Kuan Yew’s recent call for further consolidation among Singapore’s three remaining banks appears at odds with current thinking about any country having giant banks that are too big to fail.
That rethinking about big banks came in the wake of the recent financial crisis that led to government bailout of scores of giant banks in America and Europe, including the Bank of America, JPMorgan Chase, Citibank, Goldman Sachs, UBS and the Royal Bank of Scotland.”
Read the rest of his article in Today online here:http://www.todayonline.com/Commentary/EDC100712-0000025/Bank-on-more-choice,-not-less