bclemms
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The nation's biggest financial firms, battered by huge losses in their mortgage businesses, are relying on an enigmatic source for cash: foreign governments in the Middle East and Asia.
Citigroup announced yesterday that it had sold a 7.8 percent stake in the company worth $14.5 billion to a group of investors, including the government of Singapore and Saudi Prince Alwaleed bin Talal, as it revealed a colossal $10 billion loss for the fourth quarter. Merrill Lynch, which is expected to report a massive loss tomorrow, said that it sold a special class of stock worth $6.6 billion to funds managed by South Korea and Kuwait.
This is the second time in recent months that the two banks have sought help from foreign government investment pools, known as sovereign wealth funds.
http://www.washingtonpost.com/wp-dy...01/15/AR2008011503664.html?hpid=moreheadlines
Citigroup announced yesterday that it had sold a 7.8 percent stake in the company worth $14.5 billion to a group of investors, including the government of Singapore and Saudi Prince Alwaleed bin Talal, as it revealed a colossal $10 billion loss for the fourth quarter. Merrill Lynch, which is expected to report a massive loss tomorrow, said that it sold a special class of stock worth $6.6 billion to funds managed by South Korea and Kuwait.
This is the second time in recent months that the two banks have sought help from foreign government investment pools, known as sovereign wealth funds.
http://www.washingtonpost.com/wp-dy...01/15/AR2008011503664.html?hpid=moreheadlines