Just little big stakes in US companies now and take the rest later.
|Citi Sells Stake to Abu Dhabi Fund
NEW YORK (AP) — Citigroup said late Monday that the Abu Dhabi Investment Authority will invest $7.5 billion in the nation’s largest bank, offering needed capital to offset big losses from mortgages and other investments.
The cash from the sovereign investment fund of the Gulf Arab state, which has been a beneficiary of this year’s surge in oil prices, will be convertible into no more than 4.9 percent of Citigroup Inc.’s equity. Citigroup characterized the investment as passive and said the fund will not be able to name any board members to the bank.
The Investment Authority would become one of Citi’s largest shareholders.
Dubai International Capital, which is owned by the ruler of that booming Persian Gulf city-state, announced earlier Monday that it has acquired a stake of undisclosed size in the Japanese electronics and media company Sony Corp. Its other investments this year included acquiring a 3.12 percent of European Aeronautic Defence & Space Co., which builds Airbus commercial planes and military aircraft. The firm also holds stakes in Daimler AG and British bank HSBC Holdings PLC.
Many companies have welcomed such investments because the funds tend to be stable investors, but some U.S. officials have expressed concern that their acquisitions could target sensitive industries with links to national security.
Abu Dhabi’s move recalls the early 1990s investment in Citi made by Saudi Prince Alwaleed bin Talal. After Citi made some losing bets on U.S. real estate and Latin America, Alwaleed bought a stake in the bank for less than $600 million that has since ballooned into several billions of dollars.
So the banks gave money to people who really had terrible credit to begin with, back when Liberals cried that banks need to give out more loans. Then it all comes back to bite and the banks sell stakes to Arab Muslim nations. The unspoken truth is that Mexico has leverage over America because of outstanding bank deals, that could go belly up if America ever did something like close the southern border to illegal entry. How much leverage will Arabs have in the future, when some future President feels a need to go after a terrorist king pin in an Arab nation after a major terrorist attack?
American sovereignty slipping away daily…
And how do the Arabs get the money to buy up America? The oil. I still think America needs to work harder on clean liquid coal.