Skip to: Content
Skip to: Site Navigation
Skip to: Search
THURSDAY, NOVEMBER 26, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


0

Saudi Prince, Chinese Bank to Back Citigroup

Foundering US giant will get billions from foreign investors

Share

(Newser) – A Saudi prince and one of China's government banks are expected to invest billions in Citigroup, the Wall Street Journal reports today. The China Development Bank is expected to pump in $2 billion, sources said; the amount billionaire Prince Alwaleed bin Talal would front is yet to be determined, but would need to be below 5% of Citigroup's $140 billion value to avoid regulatory issues.

Citigroup, facing a $15 billion fourth-quarter write-down as a result of the mortgage crisis, is no stranger to foreign investment, having taken $7.5 billion from Abu Dhabi's investment arm last month. The bank is hoping to raise $8-$10 billion overall from investors; the deals with Alwaleed and the CDB aren't yet official and could still fall apart, the Journal notes.

A Citibank office is shown on Tuesday, Nov. 27, 2007 in New York. The Abu Dhabi Investment Authority will invest $7.5 billion in Citigroup, offering the nation's largest bank needed capital to offset big losses from mortgages and other investments. (AP Photo/Mark Lennihan)
A Citibank office is shown on Tuesday, Nov. 27, 2007 in New York. The Abu Dhabi Investment Authority will invest $7.5 billion in Citigroup, offering the nation's largest bank needed capital to offset...   (Associated Press)
Pricnce Alwaleed bin Talal bin Abdulaziz Alsaud, centre, Chairman of Kingdom Holding company of Saudi Arabia signs for an Airbus A380 , for his personal use, with Tom Enders, sitting left, President and CEO, and John J. Leahy, Chief Operating Officer Customers, Airbus, during the Dubai Airshow 2007, in Dubai, United...
Pricnce Alwaleed bin Talal bin Abdulaziz Alsaud, centre, Chairman of Kingdom Holding company of Saudi Arabia signs for an Airbus A380 , for his personal use, with Tom Enders, sitting left, President...   (Associated Press)
One month after the terrorist attacks on the World Trade Center, Prince Alwaleed Bin Talal of Saudi Arabia, right, is escorted by then-New York Mayor Rudy Giuliani at the site of the former towers in this Oct. 11, 2001, file photo. New York officials denied Iranian President Mahmoud Ahmadinejad permission...
One month after the terrorist attacks on the World Trade Center, Prince Alwaleed Bin Talal of Saudi Arabia, right, is escorted by then-New York Mayor Rudy Giuliani at the site of the former towers in...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.24.09
Murdoch and Microsoft: The Mice Are Trying to Roar
11.23.09
Books Are Bad for You
0 comments
VIEWING:
 
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

255 Stories

 Pay Czar Cuts 
 Bonuses, But 
 Boosts Salaries 

Feinberg beefs up base base to help firms retain talent

Oct 28, 09 1:24 AM CDT
(Newser) - Base pay will increase for the majority of top execs in the finance and auto firms supervised by federal pay czar Kenneth Feinberg. Salaries are being bumped up—by hundreds of thousands of dollars in some cases—as bonuses and other perks are slashed. Despite the salary hikes, all 136... More »

MORE ABOUT:
Chrysler • Citigroup • executive compensation • Bank of America • General Motors • AIG • bonuses • executive bonuses • Kenneth Feinberg • pay czar

Pay Czar Slashes Top Salaries at 7 Bailed-Out Firms

175 top earners will see pay cuts averaging 50%

Oct 21, 09 3:53 PM CDT
(Newser) - President Obama’s pay czar will cut compensation for the 25 highest-paid employees at seven companies that took large amounts of government aid. The 175 executives will face salary reductions of 90%, but with other compensation elements added in, the total reductions average 50%. Ken Feinberg also will require the... More »

MORE ABOUT:
Chrysler • Citigroup • executive compensation • Bank of America • General Motors • AIG • compensation • bailout • GMAC • Wall Street bailout • pay czar

MARKETS

 Dow Down 41; 
 Tech Rises, 
 Banks Fall 

September rally sees slight pullback

Sep 21, 09 3:13 PM CDT
(Newser) - Stock indices finished mixed today after the markets reached what most traders saw as a slight pause in a very strong September, the Wall Street Journal reports. Financials led declines: AmEx fell 2.9%, while Bank of America lost 1.8%. Google rose 1.1% after Citigroup analysts boosted their... More »

MORE ABOUT:
Google • Citigroup • Bank of America • Dow Jones • American Express • Nasdaq • S&P 500

255 Stories


Related links

What is the China Development Bank?
Wikipedia

Profile of Price Alwaleed, world's 13th-richest man
Forbes

... which is how he affords world's largest private jet
Times (UK)

Chinese government pumps $20B into China Development Bank
Associated Press


Business 
TwitterFollow @NewserBusiness on Twitter

 
Citigroup • Abu Dhabi Investment Authority • Prince Alwaleed bin Talal • China Development Bank

from our news partners