S&P 500
7,524.80
+0.07%
Dow Jones
52,421.50
-0.19%
Nasdaq 100
29,445.60
+0.64%
Russell 2000
2,951.71
+0.01%
FTSE 100
10,451.80
-0.57%
Nikkei 225
67,817.60
+1.12%

Investing

Abu Dhabi Puts $7.5 Billion Into Citigroup (C)

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

In a move that may be a victory of hope over reason, the investment arm of the Abu Dhabi government has put $7.5 billion into Citigroup (C).

Wall St. may never know how much Citi shared with its new investor and how much the new shareholder knows about the bank’s balance sheet.

What is certain is that Abu Dhabi is taking a huge risk that most of the write-offs at Citi are behind it and that it will not be forced to raise even more capital within the next few months.

Citi’s balance sheet and its relationship with certain SIVs that it has set up are still very poorly understood, so the bank may be a bit of a powder keg. A severe drop in the value of mortgage-related instruments owned by the bank or its SIVs could be the match that sets it off.

Abu Dhabi may rue the day that it wrote the check.

Douglas A. McIntyre

Contact [email protected] for any questions or corrections.

Disclaimer: Energy Exploration Technologies, Inc. ("EnergyX") has engaged 24/7 Wall St to publish this communication in connection with EnergyX's ongoing Regulation A offering. 24/7 Wall St has been paid in cash and may receive additional compensation. 24/7 Wall St and/or its affiliates do not currently hold securities of EnergyX.

This compensation and any current or future ownership interest could create a conflict of interest. Please consider this disclosure alongside EnergyX's offering materials. EnergyX's Regulation A offering has been qualified by the SEC. Offers and sales may be made only by means of the qualified offering circular. Before investing, carefully review the offering circular, including the risk factors. The offering circular is available at invest.energyx.com/.

Comparisons to other companies are for informational purposes only and should not imply similar results. Past performance is not indicative of future results. Market shortfall are forward‑looking estimates and are subject to substantial uncertainty. Investments in private placements, and start-up investments in particular, are long-term, illiquid, speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in start-ups

Follow 24/7 Wall St. on Google
Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Douglas A. McIntyre |

Citigroup (C) Will Need A Lot More Money

The biggest question running around Wall St. is how much more cash is going to have to go into the…

Douglas A. McIntyre |

Citigroup (C) May Try To Buy Back Government Shares

Citigoup (C) may try to buy back some of the shares that the US government got when it bailed out…

Douglas A. McIntyre |

Abu Dhabi Prepares To Cheat Citigroup (C)

Caveat emptor. Abu Dhabi agreed to buy $7.5 billion in Citigroup (NYSE:C) shares at about eight times the current price.…

Douglas A. McIntyre |

Citigroup (C) To Repay Government, But Payment May Come Too Early

There is finally news that Citigroup (NYSE:C) is close to repaying the government as much as $20 billion to return TARP funds so it can get out…

Douglas A. McIntyre |

A New Attempt To Build A “Bad Bank”

Creating a "bad bank" is on the wish list of an extraordinarily large number of regulators and members of Congress.…

Douglas A. McIntyre |

What Did Abu Dhabi Get For Dubai Bailout?

Abu Dhabi did the unexpected. It provided fellow member of the United Arab Emirates Dubai $10 billion in funds. Four…

Douglas A. McIntyre |

New Europe Bank Stress Tests Will Come Too Late

nationsonline.orgThe European Union is suggesting that a new round of bank stress tests may be necessary to calm the capital…

Douglas A. McIntyre |

Merrill Lynch (MER), Wachovia (WB), And Morgan Stanley (MS) Deals Could Fail

A few days ago, it would have been nearly impossible to believe that the deals for Bank of America (BAC)…

Douglas A. McIntyre |

Will Citi (C) Loan KKR Money To Buy The Bank’s Distressed Loans?

The FT writes that "Citigroup (C) is in talks with KKR to provide financing to buy some of the leveraged…

Top Gaining Stocks

FactSet Research Systems
FDS • Vol: 929,614
Gartner
IT • Vol: 1,375,344
Intuit
INTU • Vol: 6,564,709
Valero Energy
VLO • Vol: 2,870,552
Paycom Software
PAYC • Vol: 620,867

Top Losing Stocks

Coterra Energy
CTRA • Vol: 73,319,495
Oracle
ORCL • Vol: 56,688,573
Intel
INTC • Vol: 100,754,655
Lam Research
LRCX • Vol: 9,770,514
ON Semiconductor
ON • Vol: 9,568,853