Chronicles Of Depression 2.0: #080

Kuwait Sovereign Fund May Boost Citi, Merrill Stakes (Update2)

May 1 (Bloomberg) — Kuwait’s $250 billion sovereign wealth fund may boost its stakes in Citigroup Inc. and Merrill Lynch & Co. as it pursues investments in companies battered by subprime- mortgage related losses.

“The valuation in the markets in the U.S. and Europe, we think, has created a lot of opportunities,” Bader al-Saad, the Kuwait Investment Authority’s managing director, said in an interview with Bloomberg Television today. “We have confidence in the management” of Citigroup and Merrill, he said. Shares of both companies rose in New York trading.

The KIA in January bought a $3 billion stake in Citigroup and invested $2 billion in Merrill to help replenish capital at the companies after they suffered writedowns on mortgages, bonds and loans. Banks and securities firms have absorbed more than $300 billion of losses since the collapse of the subprime- mortgage crisis set off a global credit contraction.

Emphasis added by me.

Really, what can I say?

Do I rail about Financial Security, when there clearly isn’t any in the current global flows of currency?

Do I rail about possible political consequences down the road? In a nation that is only interested in immediate gratification?


Explore posts in the same categories: C.O.A.T. - Money, C.O.A.T. - Scams, Depression 2.0

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: