Citigroup Inc is expected to get an investment from Saudi Prince Alwaleed bin Talal and other investors including China Development Bank, The Wall Street Journal reported on its Web site late Friday, citing people familiar with the matter. The newspaper said the Chinese bank is expected to invest about $2 billion but was uncertain on how much bin Talal will invest. The Journal said bin Talal's investment is not expected to increase the prince's current stake above 5%. The Journal said Citigroup hopes to raise about $8 billion to $10 billion from a number of investors http://www.marketwatch.com/news/sto...x?guid={2A4BA208-FFAB-4E65-ACA7-4816D85A8385}
Wall Street is a joke......actually the US is a joke. Who would have thought the Wall Street bankers would be "taken over" by the Chinese and Arabs one year ago?
I agree, especially considering the whole issue of the Dubai Ports not long ago. The Chinese are throwing good money after bad through averaging down. Ask Bank of America how that's working out! If I tried to average down once down 70%, my prop firm would cut off my computer...
The SWF´s should have accumulated their funds in order to create a new "super" - investmentbank! Problem is client relationships and longstanding "friendships" between Harvard, Yale and Stanford alumnis in American industry...and not to forget the "political" upset....
for investors who have billions to play, buy on the cheap is the key. C is the biggest bank in the US, it makes sense for the Chinese to come in, when they are loaded with cash with decades of trade surplus.
Not yet it dosen't make sense. Why pay $26 for something you can buy for $5 in a year or so? Just b/c you have billions, buying today is "not on the cheap", it's just cheaper than it was. People were using thta same argument when BAC made it's first purchase of CFC (down 70%). There is no denying that was a poor trade, so why is today the "bottom"? Even CFC was not bought out at a premium. These are desperate attempts at a last gasp. All the BAC/CFC merger did was confirm BAC is now one of the better shorts in the financial industry. C is gonna get cranked in a big way.
C is worth $28 right now because the market says so... will it worth $5 or $50 in a year? nobody knows.
Yer probably right, there, Drake. But if the cash infusion turns the company around when it's $26 it's a good investment; if the $$$ infusion comes too late to turn the company around when it's $5 it's a bad investment. But you're probably right.
'Wall Street is a joke......actually the US is a joke. Who would have thought the Wall Street bankers would be "taken over" by the Chinese and Arabs one year ago?' Nothing wrong in foreign acquisitions till the time assets are not in the hands of 'out and out' hostile parties. There should be clauses in place that any misuse of the ownership can result in hard actions by the US government with investors not getting any appreciation in value of the their original investments. Also heard that 30% of NASDAQ is soon going to be owned by the Shiekh of Dubai and so is NYSE.
What? You think CITI will be worth 50 in a few years? Based on? The Banks and Brokers have yet to truly meltdown. Wall Stree, Arabs, & SWF (Soverign Wealth Funds) will keep the XBK, XBD limping along for a year or so. We are only hitting the tip on the CDO's. No one on the street has spoken about the Derivative implosion that is project to follow the "Junk Bond" implosion we are seeing in the CDO markets. You have to have your head in the sand to truly believe that CITI, WAMU, BAC etc will be around in the same manner as they were the last decade or two. Who knows what the land scape will look like in the Financial World by 2010. However, I highly doubt you will see any of the later banks at 50 per share. The powers that be may be able to push the full brunt of the Financial meltdown off till after the the presidential elections. So, to the Sheepole and Sheeptraders of ET: "You take the blue pill and the story ends. You wake in your bed and believe whatever you want to believe" You take the red pill and you stay in Wonderland and the "Market" will show you how deep the rabbit hole goes."