Citibank has recently been rescued (literally) off the subprime (with a potential $11 billion writeoff) .. fallout that it faces. Although heads have rolled, there seems to be an inclination to look towards the Arab world… is it not a trend??? or is it the overflowing Arab pockets that attract the incompetent bankers.
I think it is time that Citibank puts its house in order.. I mean bring in some real bankers… what a shameful act!!!
Of the world’s biggest lending market that is the United States, Citibank couldn’t find a single entity who would believe their story… not one time but twice…and then yes.. easy Arab money came to the rescue. There are at least some benefits of these high oil prices 🙂
16 years ago
Reason: Loan losses in Latin America and a collapse in U.S. property prices
money injected: $580million
financier: Prince Alwaleed bin Talal of Saudi Arabia
He makes it clear in his biography that he saved the bank from a clear bankruptcy. Book review from Citigroup’s former chairman and chief executive officer, Sandy Weill states, “It is interesting to relive the story of how Prince Alwaleed stepped in to help save Citibank. Until now, only a few people knew the full story. The book captures the drama and explains it clearly”
Second Bail out:
Reason: Potentially $11billion additional write-off due to collapse of US sub prime loan market
money injected: $7.5 billion
financier: Abu Dhabi Investment Authority – ADIA (an Investment company of the Abu Dhabi government)
What a shame!!!
Can they learn from the past and will they be third time lucky… ?????
ADIA “will bolster Citigroup’s capital and competitiveness,” U.S. Senator Charles E. Schumer said in a statement. The New York Democrat was among the lawmakers who criticized the Bush administration’s decision last year to approve DP World Ltd.’s $6.8 billion acquisition of London-based Peninsular & Oriental Steam Navigation Co., a deal that gave the Dubai state-owned port company control of six U.S. terminals.
Schumer was among those who said Dubai ownership would jeopardize U.S. national security, arguing that two terrorists involved in the Sept. 11, 2001, attacks were from the U.A.E.
Yeah… we can take a U-turn when it is all about saving the hard-earned money of US citizens… or shall we say saving the American economy from going into a recession 🙂