4 Mar 2008
Peter Moreira and George White
Could the biggest U.S. bank be on the verge of another cash call? The speculation is mounting after Bloomberg reported that the head of Dubai International Capital LLC said the bank will need more capital from outside investors as losses from the collapse of the U.S. subprime mortgage market increase.
In November, New York-based Citigroup Inc. sold $7.5 billion in equity to the Abu Dhabi Investment Authority and issued additional debt securities with capital benefits of about $4.3 billion. Then in January, the financial giant said it was getting another $14.5 billion from investors, including the governments of Singapore and Kuwait.
Recent sovereign wealth fund investments The Wall Street firms raising capital | ||
| Company | Sovereign wealth fund's country | Amount (bill) |
| Citigroup Inc. | Abu Dhabi, Singapore, Kuwait, Prince Alwaleed bin Talal (Saudi Arabia) | 22.0 |
| Merrill Lynch & Co. | Singapore, Kuwait, South Korea and Japan | 12.8 |
| UBS | Singapore | 11.8 |
| Morgan Stanley | China | 5.0 |
| Bear Stearns Cos. | China | 1.0 |
| Source: TheDeal.com | ||
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