While US Taxpayers Were Bailing-Out CITI Bank, They Were Bailing Out Dubai

[JCMach1]

This one is going to really make you angry. Within the last month, the "federal government agreed Sunday to take unprecedented steps to stabilize Citigroup Inc. by moving to guarantee close to $300 billion in troubled assets weighing on the bank's books, according to people familiar with details of the plan.

Treasury has agreed to inject an additional $20 billion in capital into CITI"...http://seekingalpha.com/article/107514-citibank-bailout-300-billion-doesn-t-sound-like-a-lot-anymore

So, just another bank bailout... nothing to see here move right along...

The real insulting part of this is that today it was announced that the government of Dubai had received 8 Billion in funding from CITI:

Citigroup Incorporated has arranged more than $8 billion (Dh29.3 billion) finance for various Dubai government entities in recent months, the global banking group said.

"This is in line with our commitment to the UAE market in general, and reflects our positive outlook on Dubai in particular," said Citi's chairman, Sir Win Bischoff in a statement.

Officials familiar with Citi's recent deals with Dubai entities said the amount is an aggregate of about half a dozen deals Citi did with Dubai's public sector entities during the past few months.

"We continue to place the Gulf region among our globally most significant markets, and we certainly see opportunities across all of the UAE's financial sectors. In the last 2 years, we've participated in most major financing transactions across the region including the UAE... http://gulfnews.com/business/Banking_and_Finance/10267253.html

So, CITI has been giving taxpayer money directly to Dubai. No doubt those are some real sweetheart deals they are getting!

[gravity]

1. The prince of Dubai has given billions in capital directly to Citi

The only reason Citi was forced to go to the US government was that Dubai had stopped bailing them out.

[Idealism]

2. Not quite

Dubai has invested billions in Citi corporate bonds, meaning they effectively 'own' much of the banking conglomorate, they didn't just hand them billions like we did.

On another note, Citigroup has so mismanaged their affairs, that anyone in middle-managment down to the board of directors should be fired and stand trial for fraud.

[gravity]

3. The US government bought preferred equity shares

and they effectively own a part of Citi. Our government isn't completely stupid when handing out money.

[Idealism]

5. If you think all the money we lent them ended up with proportional equity

I think you may be a bit gullible :/

[Skink]

18. oh well if we got Perferrd shares.

fUCK evebody!!!!.

[JCMach1]

4. Abu Dhabi actually... Dubai basically has completely

leveraged future oil revenues to develop the Emirate. The trouble is the assets backing that up are a hugely over-inflated property market. Sound familiar? Over the last six months the property market here is in the process of tanking. If Dubai's sovereign fund bought into CITI, they did so with money that was already leveraged... the equivalent of buying on margin.

The point is the Federal Gov. gave them 20billion in funding and they immediately loaned 8billion (not for car loans, or houses, or anything to benefit the American consumer) to help bail Dubai out of their financial bind.

[gravity]

7. It is the same country

[JCMach1]

9. Yes and no... UAE is a federal system... each Emirate is a separate

Kingdom within that system.

[gravity]

10. True but their economic interest are aligned

I just don't think this deserves much outrage granted that the UAE has placed billions into Citi bank which actually helped prevented the bank from potentially going under.

[JCMach1]

11. You don't understand the economic rivalry between Abu Dhabi and Dubai

Abu Dhabi- has a virtual monopoly on remaining oil and gas in the UAE. They grudgingly grant part of that $$$ to the Federal Gov. Keep in mind the Shk. of Abu Dhabi is the President.

Dubai- has leveraged virtually all of their remaining oil revenue to develop economically with numerous mega-projects. That is a HUGE problem at the moment with the price of oil. Add to that a global slowdown (hits Dubai transport and tourism) and a tanking real estate market and you have BIG problems.

Abu Dhabi has consistently been rather jealous of Dubai's development and much more conservative with their cash reserves. Always, there has been rivalry.

[Skink]

8. Sounds ethical.

Gasp.

[JCMach1]

14. Please note, the US just guaranteed 300billion in CITI assets- that includes the TOTAL

of Dubai's obligations to CITI.

Dubai has a very long and complex relationship with Dubai and all of their affiliated companies...

Note, CITIbank in Nov. basically wrote off 6billion in Dubai Debt from their books... http://www.meed.com/news/2008/11/citibank_to_sell_exposure_to_6bn_dubai_debt_at_a_loss.html

Now, they have added 8billion more in NEW debt.

[Skink]

15. Are the space tours in jeopardy?

I shaved today dammit!!!

[JCMach1]

16. Not sure! That's near the time rift in UAE known as

RAK (Ras Al Khaimah)... Everything strange or unusal in UAE happens there.

[Skink]

19. The actual space tours are in eoparday.

We don't have to worry about....

[Double T]

6. Citibank closed all of their branches in our area and sold them to a local competitor.

Good to see Citi 'believes' in America. :puke: Looks like we're bailing out everyone at the expense of the American people.

[slipslidingaway]

12. Great :( K&R n/t

[peacetalksforall]

13. First thought, first spec. (ulation): This is money that Citibank has been

'caring for' that represents profits and payments to Cheney, who will be residing in Dubai in the near future. Pure speculation on my part. However, Dubai may be the perfect land of self-exile for Cheney. He can continue to wheel-deal in nuclear components and secrets and fancy toy weapons and services. That's where Halliburton moved to, after all. Both are avoiding law suits? They will thumb their noses at us.

[elleng]

17. People here (DU) wondered why banks not lending

to plain old Americans/businesses!

SEE THIS!

http://www.skidubai.com/

[earth mom]

20. K & R! nt

[Tesla]

21. Where do you think all of these criminals are going

When they burn Rome.
They are un-touchable there
The won't bail out Detroit, Dubai's sister city!!


Sister cities
http://en.wikipedia.org/wiki/Dubai
Dubai has 15 sister cities, and most of the twinning agreements have been done post-2002.<92>

Frankfurt, Germany
Gold Coast, Australia
Guangzhou, China
Shanghai, China
Osaka, Japan
Beirut, Lebanon
Casablanca, Morocco<93>
Moscow, Russia
Damascus, Syria
Geneva, Switzerland
Istanbul, Turkey
Dundee, United Kingdom
Detroit, United States

[robinlynne]

22. You couldn't make this stuff up if you tried...