11.12.2012 - Citigroup and the multi-billion investment that went terribly wrong
At issue is the $7.5bn investment that Abu Dhabi Investment Authority, a large sovereign wealth fund, made in Citigroup Inc. (C) in November 2007, just after the bank fired Chairman and CEO Chuck Prince. Michael Klein, one of Citigroupís most senior investment bankers, negotiated the deal; Robert Rubin, the former Treasury Secretary, in nearly his first official act after taking over for Prince as Citigroupís chairman, flew off to Abu Dhabi to bless it. A year later, of course, Citigroup collapsed, and American taxpayers bailed it out to the tune of $45bn, plus another $306bn to ring-fence a pile of toxic assets. ADIA, as the Abu Dhabi fund is known, lost nearly its entire investment after Citigroupís shares were diluted down to pennies on the dollar by the rescue financing. (ADIA did receive some $2.5bn in dividends on its stock before Citigroupís implosion.)..............................................Full Article: Source