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The deal to rescue the world's best- known bank was pieced together by regulators over Domino's pizza in near-empty offices one block from the White House.
The U.S. government’s emergency rescue of Citigroup Inc. offers a new model for bank bailouts: explicitly insuring against losses on toxic assets, with taxpayers footing the bill.
On Oct. 8, the day British Prime Minister Gordon Brown announced his 50-billion pound bailout of the U.K.’s banks, a delegation of executives from Barclays Plc’s wealth management division sat down with some of their richest clients by the shore of Italy’s Lake Como. The Barclays team had invited their guests to Villa Erba, a lakeside conference center with a helicopterlanding pad, to advise them on how to protect their money in the financial crisis engulfing the world
Barclays is the British bank that went the other way. On Oct. 31, Varley and Diamond made it clear how far they were willing to go to avoid having the U.K. taxpayer as a shareholder. To get the same guarantee, they agreed to pay a premium to attract 6.75 billion pounds from Persian Gulf-based investors who could end up owning almost a third of the bank. Varley and Diamond decided to rescue their bank with government money from Qatar and Abu Dhabi, not government money from the U.K.
“If I were a minority shareholder, I’d sell,” Peter Hahn, a fellow of finance specializing in capital markets at London’s Cass Business School and a former managing director at Citigroup Inc., said earlier.
That’s just what many investors did in the wake of Barclays’s announcement that Sheikh Mansour Bin Zayed Al Nahyan, a member of Abu Dhabi’s royal family, will own a 16.3 percent stake, making him the bank’s largest shareholder. Qatar Holding LLC, part of sovereign wealth fund Qatar Investment Authority, will own 12.7 percent. Challenger Universal Ltd., an investment vehicle owned by the Qatar state, will hold a 2.8 percent stake. Both the Abu Dhabi and Qatari investors will receive higher interest payments than either RBS or Lloyds TSB will be paying the U.K. government.
The world needs more dollars. The United States is preparing to provide them.
Oil shipping costs may extend this year's 76 percent rout as shrinking energy demand and a global recession eclipse disruptions caused by pirates off east Africa capturing their largest-ever freighter.
The five-member Bloomberg Tanker Index, led by Hamilton, Bermuda-based Frontline, plunged 63 percent since June.
Originally posted by justyc
Citigroup's $306 Billion Rescue Fueled by Pizza From Domino's
The deal to rescue the world's best- known bank was pieced together by regulators over Domino's pizza in near-empty offices one block from the White House.
domino's pizza eh? hmmm
wonder also now WHY it was named 'dominos' pizza ..... / │ │││││││
Originally posted by justyc
pirates and bermuda in the same article!!!
Pirate Attacks Fail to Revive Tanker Rates as Oil Demand Slows
Oil shipping costs may extend this year's 76 percent rout as shrinking energy demand and a global recession eclipse disruptions caused by pirates off east Africa capturing their largest-ever freighter.
The five-member Bloomberg Tanker Index, led by Hamilton, Bermuda-based Frontline, plunged 63 percent since June.