Abu Dhabi reviewing Citigroup investment -sources

[seemslikeadream]

http://uk.reuters.com/article/marketsNewsUS/idUKL160589620090301


By Stanley Carvalho

ABU DHABI, March 1 (Reuters) - Abu Dhabi is assessing its $7.5 billion investment in Citigroup (C.N: Quote, Profile, Research) as the bank's problems deepen and consequences of a possible nationalisation become clearer, according to sources close to the Abu Dhabi Investment Authority (ADIA).

ADIA invested $7.5 billon last year in Citi through convertible bonds that pay 11 percent in interest, but it must start converting the bonds into 235.6 million shares in Citigroup from March next year.

"Nothing has changed from ADIA's perspective at this point. ADIA's convertible bonds are due for conversion in a phased manner between March 2010 and September 2011, and that stands," an Abu Dhabi government official told Reuters.

"But it is carefully assessing its options due to the latest events -- although no decision is taken yet," he said, declining to be named.

A spokesman for ADIA, thought to be the world's largest sovereign fund, declined to comment.

Abu Dhabi is the wealthiest of seven emirates within the United Arab Emirates, the world's fifth-largest petroleum exporter.

ADIA's returns as a bondholder have been unaffected by continuing troubles at Citigroup, but the dramatic fall in Citi's share price has eroded the conversion value of the mandatory convertible bonds

[truebrit71]

1. Oops....!!

If C wasn't already in the shitter it would be a good time to short the stock or buy some puts...

[Idealism]

2. Yeah, because we should all short American behemoths and hope for the best...

:eyes:

[truebrit71]

3. ...oh that's right, I forgot, making money is BAD here at DU...

...sorry...:eyes:

[Idealism]

4. Shorting American companies teetering on insolvency

in an era that one or two giants go down and it could spell DEPRESSION, then yes, it is bad.

[truebrit71]

5. Riiight...because if YOU made money out of it YOUR family wouldn't benefit...

....BTW we are already IN a depression...I like to try and make money for my family to get them through the depression...Glad to hear that you have sufficient amounts to take care of yours...

[Idealism]

6. I cant wait for shorting to become illegal thanks to pricks who abuse the system.

I hope you sleep good at night.

[truebrit71]

8. I sleep good at night thanks...and I don't short stocks usually..

...and there wouldn't be much point now, which was my overall point...it is already too late for the common man to try and make something back off the backs of the greedy bastards that drove these institutions into the dirt...

But don't let that stop you from judging me...:eyes:

[Idealism]

9. If you think this crisis is over you are mistaken

The next thing that is going on now isn't shorting stocks, its betting against whole governments. Sovereign funds will be next.

[truebrit71]

10. I didn't say that either...

...we are in a world of shit and the M$M is NOT doing a very good job of letting us know..

[Idealism]

11. The thing that pisses me off the most is the lack of coverage of international events

If you only read/watch MSM in the United States, you have no idea what kind of shit is going on in Eastern Europe. Hell, even when the AP tries, they fucked up the name of Hungary in their article! It is a joke.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3762249&mesg_id=3762249

[truebrit71]

12. Exactly...The Swiss are going to have all sorts of trouble with their Eastern European loans..

...as they go bad...

[Idealism]

13. The Swiss will be bruised for sure, but its the ex-Soviet satellites I fear for

The Swiss have huge gold reserves, and their money is almost a reserve currency in most investors minds. Eastern Europe is about to literally fall into bankruptcy and default on all their obligations. Mortgages across Poland, Ukraine, Hungary, Latvia, et al have doubled because of their local currencies devaluation vs Swiss Francs (and like I explained in that post that I led you to, Swiss banks originated all these mortgages).

A "powderkeg" does not do justice to the situation there, and I fear you will see the wealthier states of the EU turn a blind eye and a deaf ear to the poorer, ex-Soviet republics. This will lead to anarchy and as Lord Keynes once said: "Vengeance will not limp."

[CountAllVotes]

7. watch n' weep short sellers

Enjoy!

http://www.youtube.com/watch?v=1qxdJ3FdRZM

:dem: :kick: