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Gulf Investors May Not Save Citigroup, Dubai Executive Says

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Gulf investors may not save Citigroup, Dubai executive says

Marketwatch from Dow Jones

By Mirna Sleiman and Andrew Critchlow

Last update: 6:20 a.m. EST March 4, 2008

Mideast sovereign wealth funds may fail to save troubled U.S. banking giant Citigroup Inc. unless more cash is pumped into the lender, the head of a $13 billion Dubai-owned investment firm said Tuesday.

Sameer Al Ansari, Chief Executive of Dubai International Capital told delegates at a private equity conference that it will take more than the combined efforts of the Abu Dhabi Investment Authority, the Kuwait Investment Authority and Saudi investor Prince Alwaleed bin Talal to save the bank.

"It's going to take more than that to rescue Citi," Ansari said. He added that more write downs are expected and that Gulf investors would be required to bolster Citi.

The Abu Dhabi Investment Authority, or ADIA, a sovereign wealth fund owned by the world's fourth-largest oil exporter, last year bought a 4.9% stake in Citigroup.

The Kuwait Investment Authority also said in January it would invest $3 billion in Citigroup.

Al Ansari said "it would take a lot more money to rescue Citigroup." A spokesperson for Citi was unable to comment immediately when called Tuesday.

If Citi goes under, we might as well all go and kill ourselves.

If the SWFs haven't got enough money to bail it out, will the US regime do so? :o

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This may become "The event" Ben was talking about some months ago that might trigger massive government intervention. Confidence in the world banking system may be on thne brink. OPEC have just announced that they will not increasse production to keep oil prices stable. U-turn Ali strikes back with a closure of a Sharia tax loophole...whatever next we ask?

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If Citi goes under, we might as well all go and kill ourselves.

That's a bit of an extreme reaction to a bank going bust.

If the SWFs haven't got enough money to bail it out, will the US regime do so? :o

My guess is that the fed would buy assets directly from it at face value (rather than market value) and allow the tradition banking - as opposed to securities trading - parts to continue on. So, effectively, a government bail out of the banking part. I'd also expect to see the Glass Stiegel act unrepealed at some point.

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This nightmare is turning into a Freddy Kruger diabolique!

Can you believe what is happening? Look what all that HPI mania has done. :o

Can you imagine the scene in Number 10 with U-turn Ali being berated by Crash Gordon for not doing enough to keep the UK out of the same sort of mess.

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Don't worry, it will be contained.

MUHAHAHHHHAAHAHAHAAHAHAHAAAHA

Indeed. I would bail them out, but only if they gave me security in the form of gold bullion.

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Egg is owned by Citigroup. They've slashed their savings rate down to a highly uncompetative 5%. They've cut up loads of customers' credit cards AND they have a clause in their terms and conditions saying they can freeze your bank account for a month or two to prevent a run on the bank. On the basis of their uncompetative rates alone, my money's been moved out.

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Citigroup IMO are one of the most incompetent organisations that I have had the mispleasure of dealing with why would you bale it out ?

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It will provoke worldwide turmoil and will lead to banks going under and then being rescued at unprecedented rates. Could you imagine how awful the world would be for 10-20 years?

It would probably be a darn sight better than it is now.

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That's a bit of an extreme reaction to a bank going bust.

My guess is that the fed would buy assets directly from it at face value (rather than market value) and allow the tradition banking - as opposed to securities trading - parts to continue on. So, effectively, a government bail out of the banking part. I'd also expect to see the Glass Stiegel act unrepealed at some point.

That's my view also.

Day to day transaction banking will be fine. The investment banking part will be left hanging, rightly so. Glass Stiegel repeal kicked off all this nonsense. Stick a few of these boys in jail and I'd be more than happy.

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That's my view also.

Day to day transaction banking will be fine. The investment banking part will be left hanging, rightly so. Glass Stiegel repeal kicked off all this nonsense. Stick a few of these boys in jail and I'd be more than happy.

I'm amazed we are not seeing bankers in the US being carted off in orange overalls and handcuffs. Hopefully they will extradite some of ours (Nat West 3 springs to mind).

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  • 294 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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