Wednesday 11 Mar, 2009
The report quotes Win Bischoof, then chairman of Citi, as saying the bank agreed to the Dubai loan because “we continue to place the Gulf region among our globally most significant markets”. The report also questions JP Morgan’s $1 billion investment in India and Bank of America’s $7 billion investment in China. “When the American people find that their tax dollars, which were supposed to be used to get us out of this financial crisis, are instead being used to ship jobs and investments overseas, there will be outrage,” Kucinich said. The report notes the loans were not illegal and that it is not known if they were directly funded by bail-out funds. A Citibank official was quoted at the time as saying the $8 billion came from the bank’s own funds and third party sources. The report was released as the committee prepares to question banking chiefs about their use of bail-out funds.
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http://www.7days.ae/storydetails.php?id=75035&title=US+outrage+over+Citi+loan
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The collapse of the Dubai economy continues
FinancialAdvice.co.uk
November 27, 2009 - While it may only have started a couple of days ago, the situation in Dubai is worse than ever with the ruling family now looking at selling a number of prized assets to try and pay down the rumoured $80 billion in debt which is dragging the economy down. What started as a request for a suspension of debt repayments has quickly developed into the possible default by a government in what is one of the investment hot spots of the world.
While the $80 billion at stake is a significant amount of money it is more the confidence factor which is starting to weigh down on worldwide stock markets which were initially down again today for the second day running. Investors, credit rating agencies and other financial related groups are now looking more closely at the finances and the trading of an array of companies around the world. If this can happen to one of the richest families in the world, are there any other countries around the world which are at risk?
Even though Dubai is slightly different from most developed countries, it is the significant amount of money which has been ploughed into the economy by the ruling family and overseas investors which is causing concern. Is this the start of a domino effect which could bring in to play an array of different governments and countries around the world?
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