Sa sariling mantika

I’ve been following the Senate investigation of the DBP-Philex-Roberto Ongpin- Rey David deal. I find it very confusing actually. But the other day a helpful friend explained the transaction to me.

She said, “Imagine you are listening to them talking on the phone.”


    Mr. B: Hello R, I’m in the market for Philex shares and I heard the DBP is holding quite a few of them, would you consider selling them?

    Mr. R: As long as I will earn a profit, why not? Are you interested in buying my shares?

    Mr. B: Yes I am interested

    Mr. R: Ok, what’s your offer?

    Mr. B: P12.75

    Mr. R: Sold! I bought Philex for less than half that price so I’m doubling DBP’s money if I sell them to you.

    Mr B: Great! I’ll send my lawyers to do the paperwork.

    Mr. R: Okay. By the way and I don’t mean no disrespect butmy 50 million shares are worth P660 million.

    Mr. B: No problem, I’m going to pay for those shares with the money you are going to lend me to buy those shares.

    Mr. R: You want me to lend you P660 million so you can buy my shares?

    Mr. B: Of course. We’re both investment bankers you know that’s SOP in our business.

    Mr. R: Okay but I’m still going to need collateral. This is a big loan afterall.

    Mr. O: No problem. I’ll mortgage to you the shares that I’m buying from you.

    Mr. R: You are going to secure your loan with the 50 million Philex shares that you are going to buy with the money I’m going to lend to you?

    Mr. B: Yes. Do you have a problem with that?

    Mr. R: Moi?

“At the Senate hearing Bobby tells the investigating committee that Rey is one of the smartest bankers in the country. He added that a month later he sold the shares to Manny Pangilinan for P21 per share and he paid off the loan immediately. So DBP made money and he made money. There’s no problem, right?” she asked.

“But why do I still smell fish?” I replied.

“That’s not fish,” she said. “That’s the smell of someone cooked in his own lard.”

Manuel Buencamino

Buencamino was a weekly columnist for Today and Business Mirror. He has also written articles in other publications like Malaya, Newsbreak, "Yellow Pad" in Business World, and "Talk of the Town" in the Inquirer. He is currently with Interaksyon, the news site of TV5. MB blogged for Filipino Voices, blogs for ProPinoy and maintains a blog, Uniffors.com. Game-changers for him, as far as music goes, are Monk, Miles, Jimi, and Santana.