Big Paydays for Rescuers in the Crisis

[Bozita]

Source: NYTimes

Big Paydays for Rescuers in the Crisis
By ERIC DASH
Published: December 6, 2009


The white knights that came to the rescue of banks during the financial crisis are going home, with their pockets full of bounty from their good deeds.

In less than two years, many of the biggest overseas government investment funds, known as sovereign wealth funds, have reaped huge gains from bailing out financial institutions, and in turn, the global financial system.

In the latest announcement, Kuwait’s sovereign wealth fund said on Sunday that it had booked a $1.1 billion profit on the stake it took in Citigroup in January 2008. That equals a 37 percent annualized return on its initial $3 billion investment. Other sovereign wealth funds — including those backed by the governments of Singapore, Qatar and Abu Dhabi — have also recently cashed out stakes in foreign banks for comparably large gains.

The hefty returns highlight how some savvy government funds have been able to profit from the financial crisis, even as most ordinary investors have been pummeled by billions of dollars of losses. It also calls into question whether such funds will act as long-term investors, as many initially suggested, or merely short-term profiteers.

Read more: http://www.nytimes.com/2009/12/07/business/global/07bank.html?_r=1&hpw

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One question: Was it as good for you as it was for them?

[dixiegrrrrl]

1. I didn't even get a cigarette afterwards.

x( x(

[No Elephants]

2. No kiss, either. (Dog Day Afternoon)

[HamdenRice]

3. So did the Federal Reserve and TARP

That's what happens in a panic -- stock prices plummet to below what they are actually worth.

The losers were the pre-crisis share holders.

[saigon68]

4. Filthy