what happens to citibank's 8 billion dollar loan to dubai? (loans, small business, transaction)

[floridasandy]

Washington's Blog
The US public will be “outraged” by Citibank’s $8 billion loan to Dubai just six weeks after the bank was bailed out, US House of Representatives domestic policy subcommittee chair-man has said. Dennis Kucinich commented on the Dubai loan and other US banking investments as a congressional panel released a report that strongly questioned Citibank’s actions. The report, shown to 7DAYS, cites the Dubai loan as the largest of the “questionable transactions” by banks after the US government bailed them out. It notes that the loan to Dubai’s public sector came on December 14, just six weeks after the US government gave Citibank a $25 billion bail-out.

The report quotes Win Bischoof, then chairman of Citi, as saying the bank agreed to the Dubai loan because “we continue to place the Gulf region among our globally most significant markets”. The report also questions JP Morgan’s $1 billion investment in India and Bank of America’s $7 billion investment in China. “When the American people find that their tax dollars, which were supposed to be used to get us out of this financial crisis, are instead being used to ship jobs and investments overseas, there will be outrage,” Kucinich said. The report notes the loans were not illegal and that it is not known if they were directly funded by bail-out funds. A Citibank official was quoted at the time as saying the $8 billion came from the bank’s own funds and third party sources. The report was released as the committee prepares to question banking chiefs about their use of bail-out funds.

so basically taxpayers bail out citibank, which turns around and gives it to dubai, which will now potentially go into default.

is there any wonder why we need a federal reserve audit?

[Traderx]

The public will be outraged?..LOL!

Yeah right. 90% of the public won't ever know and of the 10% who do 99% have better things to do than be outraged over something they can't change.

And how would an audit help this? So the Fed gave Citi money, well we knew that, duh! And Citi makes loans all over the world, something other US banks don't do much of by the way, and we knew that too. Nothing would have changed.

[txgolfer130]

After publicizing the loan, some proclaimed "Sure, they'll lend to Dubai, but lend to small business or make loan modifications here in the U.S. and it's like one more deal and they're living hand to mouth!".

But seriously, the Dubai loan was supposed to be one of the safest they could do. I mean just days before calling for the standstill they raised 4 billion dollars.

[mysticaltyger]

Originally Posted by floridasandy

Washington's Blog
The US public will be “outraged” by Citibank’s $8 billion loan to Dubai just six weeks after the bank was bailed out, US House of Representatives domestic policy subcommittee chair-man has said. Dennis Kucinich commented on the Dubai loan and other US banking investments as a congressional panel released a report that strongly questioned Citibank’s actions. The report, shown to 7DAYS, cites the Dubai loan as the largest of the “questionable transactions” by banks after the US government bailed them out. It notes that the loan to Dubai’s public sector came on December 14, just six weeks after the US government gave Citibank a $25 billion bail-out.

The report quotes Win Bischoof, then chairman of Citi, as saying the bank agreed to the Dubai loan because “we continue to place the Gulf region among our globally most significant markets”. The report also questions JP Morgan’s $1 billion investment in India and Bank of America’s $7 billion investment in China. “When the American people find that their tax dollars, which were supposed to be used to get us out of this financial crisis, are instead being used to ship jobs and investments overseas, there will be outrage,” Kucinich said. The report notes the loans were not illegal and that it is not known if they were directly funded by bail-out funds. A Citibank official was quoted at the time as saying the $8 billion came from the bank’s own funds and third party sources. The report was released as the committee prepares to question banking chiefs about their use of bail-out funds.

so basically taxpayers bail out citibank, which turns around and gives it to dubai, which will now potentially go into default.

is there any wonder why we need a federal reserve audit?

I just read the same or a similar article. I think at this point it's pretty much inevitable that the US and probably many other countries are financially doomed. It's going to get really ugly.

[Chango]

POOF! It's gone.

[KLAIN]

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[texdav]

Wander if he thinks the same of GM gettingtaxpayer bailout and making huge investments in China and still woig money to taxpayers?Some how I think he has a anti-bank agenda he is pushing with spin. Playing to the maddening crowd.