New Vs Old Money

[marshbags]

Yet another interesting article from the Nation.

Fri, December 15, 2006 : Last updated 4:58 am (Thai local time)

Quote:-

OVERDRIVE

Old Money strikes back like a blast from the past

The September 19 coup has not only brought an end to Thaksin Shinawatra. It has also destroyed New Money. Now Old Money is striking back.

It is like a blast from the past. Over the past six years, Thaksin was the chieftain of New Money, riding on the crest of the telecom boom. New Money challenged Old Money for pre-dominance over Thai society. There were 10 families - including the likes of Shinawatra, Damapong, Wongsawat, Mahagitsiri, Maleenont and Jungrungreangkit - who formed the core of the New Money. Through siblings, business and political connections, New Money wanted to change Thailand's political landscape for good.

The bankers embody Old Money. But the bankers got hurt very badly during the 1997 financial crisis. The IMF, the World Bank and the tough capital adequacy requirements they imposed on the Thai banks almost destroyed the bankers' family fortunes. Still, Bangkok Bank, Kasikornbank and Siam Commercial Bank have managed to survive Thailand's worst crisis ever to hit that sector. The Wanglee clan, who used to own Nakornthorn Bank, lost their shirts. The Chearavanonts, who control the CP Group, should also be counted as Old Money, but they went on to ally themselves closely with the Thaksin regime. Charoen Sirivadhanabhakdi, the liquor tycoon and another member of Old Money, has steered clear of politics, brilliantly charting his own course.

Over the past decade, Old Money has been heart-broken again and again. When Thaksin rose to power in 2001, he did not trust Old Money at all. He still could remember the days when he was struggling to build up his telecom business and had to go down on his knees to beg for loans from them. Thaksin did not conceal his contempt for Old Money. He considered himself ahead of his time. He was in the booming telecom business while the bankers still made money the old-fashioned way from interest-rate spreads. He was a self-made man, racking up more than US$1 billion within one generation when he was in his mid-forties. It had taken several generations for Old Money to accumulate the wealth Thaksin had in just one.

So when Thaksin took over Thailand, he would not share power with Old Money. The bankers were heartbroken again for failing to climb into the bandwagon. Still, the Chearavanonts became a reluctant partner in his regime, while the Sophonpanich family was kept at arm's length, in the outer circle. Kasikornbank was completely left in the cold. Strangely enough, Siam Commercial Bank would ally more closely with Thaksin than other banks - so close, in fact, that it got the Shin Corp deal.

At the height of Thaksin's reign, the Shinawatra Tower, which is the headquarters of Shin Corp, was the centre of power. It was here that Boonklee Plangsiri presided over Shin Corp as chairman. But he would also work for Thaksin as one of his most trusted aides. Most of the important deals had to pass his scrutiny first. Dr Prommin Lertsuridej, Thaksin's secretary, was also a former Shin Corp man, whom Thaksin trusted the most. The trio effectively managed Thailand like a company. But the coup brought New Money down like a house of cards. The National Counter Corruption Commission and the Asset Examination Committee are building up corruption cases against New Money.

For the complete article please go to the following url:-

http://www.nationmultimedia.com/2006/12/15...on_30021579.php

An interesting yet different approach to linking the Puyai to their respective interests on both sides of Thai society.

Transparency vs. vested interest is the new power objective and if carried through can only enhance and restore Thailands reputation.

In my humble opinion as always.

marshbags

[jumnien]

Interesting post, thanks! Much more thought-provoking than the usual "Thaksin is the anti-christ" or "Thaksin wasn't any worse than anyone else" posts we all line up with (that is most of us).

[Mobi]

This article pretty much refelect my understanding of the state of play.

Certainly there was huge rentment and hatred amongst the "old Money" people.

It begs the question as to whether now the "old money" is back at the helm, will they really clean up the country or will they just go after Thaksin and his cronies, and then go 'back to business as usual'?

[johnnyk]

I think the oldest money in the country might have some influence on this and, seems to me, its influence has already been felt.

[slackula]

Charoen Sirivadhanabhakdi, the liquor tycoon and another member of Old Money, has steered clear of politics, brilliantly charting his own course.

Charoen left school aged 10 and started his empire selling hoi thord on the street. He married into old, but not massive, money and converted that into the wealth he has now as I understand it. A very shrewd businessman who made a lot after the '97 crash because when everybody hit the bottle (that he was selling) he was the one raking in the cash and buying up failing businesses at bargain basement prices.