HRH Alwaleed: 'Full Confidence' (Q&A)

-Posted by D. Worth (US) | for- M. Barbay (France)

The newest bailout includes more than the guarantee and the capital injection. It enables Citigroup to treat the guaranteed assets as being relatively safe, thereby improving its apparent capital position. more.

Questions and Answers: Saudi Prince Alwaleed bin Talal Al Saud
"Citi's putting assets into a special investment vehicle should not be taken as a sign of worry, he said. Pandit believes many of these assets will improve," more.

"The financial boom of the first half of this decade will be remembered as a time when innovation overwhelmed the capacity of both regulators and financial institutions to assess risk." (From iht.com)

"Citigroup has always been under Fed regulation... The need for repeated bailouts there shows both that the regulation was ineffective and that even after the crisis began, the government underestimated its severity."

The strive to purchase insurance, only to learn that the losses were overwhelming; as AIG executives responsible for writing the swaps told investors they would never suffer any losses...And now this finds us with the need to give time, to instill confidence... As I believe that this will definitely turn around...

The government has come up with a clever arsenal of tools to help financial institutions, said Jim Hardesty of Hardesty Capital Management. What is needed most is a consistent approach.

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The Citigroup bailout came at a cost: #
NEW YORK: Citigroup will halt dividend payments for the next three years and agree to restrictions on executive compensation under terms of the U.S. government rescue of the struggling bank, it was revealed Monday.

Citigroup had to make the concessions in return for the U.S. government's direct investment of about $20 billion in the bank and an agreement to back about $306 billion in loans and securities. read more.

China Life Is Interested in AIG Asia Assets: #
China Life Insurance, the world's biggest life insurer by market value, is interested in buying Asian assets of American International Group, a senior China Life executive briefed on the situation said on Monday.

"We want to buy parts of AIG's business, especially those in areas of Asia such as Hong Kong, Singapore and South Korea," the manager told Reuters.

Spokesmen at Beijing-based China Life and AIG both declined to comment.

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