Post Tagged with: "sovereign wealth funds"
Lehman missed out on $5 billion from Korea
Apparently, Lehman Brothers was looking to strike a deal with a Korean Sovereign Wealth Fund (SWF) for a whopping $5 billion, but the deal fell through — this according to the NY Post. Lehman Brothers’ embattled Chief Executive Dick Fuld nearly struck a deal to raise almost $5 billion from South Korean wealth funds and
Sovereign wealth funds cut exposure to U.S.
Sovereign Wealth Funds (SWFs), which played such a vital role in the recapitalization of U.S. financial institutions during the first go around, are looking to cut their U.S. exposure. Basically, the U.S. is running an extremely inflationary monetary policy with Fed Funds at 2% and inflation at 5%. The Dollar has therefore lost value relative
Chrysler building: is the Middle East the new Japan?
If you haven’t heard yet, you will soon. The Chrysler Building was snapped up by the Abu Dhabi Investment Council (otherwise known as the government of a foreign country). With the U.S. still sporting a current account deficit over 5% of GDP, foreign countries around the world are piling up dollar bills in their coffers.
Investors in Financials lose $10 billion
The Financial Times’ blog Alphaville is reporting today that those investors who ponied up for shares in financial institutions after the financials wrote down billions and needed additional capital – those investors – lost $10 billion! Basically, its like throwing good money after bad. Investments in many of these institutions is dead money until the
Brazil: Look who’s got a Sovereign Wealth Fund
The FT reported today that Brazil, fattened by newly found oil reserves and a sky-high oil price, is getting into the Sovereign Wealth Fund (SWF) game. They are ready to fund $200 billion toward this project and have built up the currency reserves to begin making that move. To date, most SWFs have been in
Barclays taps Sovereign Wealth Funds
The Sunday Telegraph is reporting yet another major Western bank is going cap in hand to sovereign wealth funds in order to stave off the inevitable crisis. This time its Barclays, Britain’s third largest bank. At a time when RBS is issuing a massive £12 billion of fresh capital by tapping its beleaguered shareholder base, Barclays must have decided it needed to go another route if it is to have success raising capital
Carlyle: Expect protracted credit crisis
The financial services sector has been reeling from over $300 billion in writedowns due to the credit crisis that has spread globally. I expect further losses to hit this sector in the U.S. due to commercial real estate, credit cards, auto, Alt-A mortgages and an inadequate levels of reserves for bad debt. Moreover, losses are