Citigroup could get as much as $10 billion from foreign governments and Merrill Lynch is expected to receive $3 billion to $4 billion, with much of the cash coming from a Middle Eastern government investment fund.[...]
Other firms that have looked to the Middle East and Asia to help shore up their capital include Morgan Stanley
[...]
In late November Citigroup got a $7.5 billion injection from Abu Dhabi Investment Authority, which gave the investor up to a 4.9% stake in the group as well as annual interest payments of 11%.
We squawked about letting them control our ports, but I haven’t heard any complaint about them getting a stake in our financial institutions.
There also are questions about how politicians are going to react to what looks on the face of it a bit like the mortgaging of Wall Street to foreign governments. Potentially worse yet, it is hard to call these investments anything less than fire sales. After all, the stocks of both firms are down a jaw-dropping 45%-50% in the past year.
At least Middle Easterners appreciate American financial values – buy low.
....but hey, do what you want....you will anyway.
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