Citi, Merrill Again Eye Foreign Cash |
| TheStreet.com - Jan 10, 2008 |
Cash-strapped Citigroup and Merrill Lynch are reportedly ready to again tap foreign government-run funds to shore up their balance sheets, according to The Wall Street Journal.
The two firms, hammered last year by writedowns related to mortgage-backed securities that led to ousters of their respective CEOs, already have reaped billions in investments from so-called sovereign wealth funds. Now Merrill is expected to pick up as much as another $4 billion from a Middle Eastern government investment fund and Citi could get as much as $10 billion from foreign sources in the Middle East and Asia, the Journal reported.
Citi's board also is expected to meet Monday to discuss cutting the bank's dividend in half, the paper said. The move, which Citi has repeatedly said it would not take, could save $5 billion, the Journal said. The nation's largest bank also is expected to make major job cuts under new CEO Vikram Pandit.
Read Full Article from TheStreet.com
- Posted: 2008-01-10 10:12:22
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