With hole in balance sheet, Merrill seeks $4b from Kuwait

[flashl]

Kuwait set to invest as Merrill seeks $4bn

By Henny Sender and Ben White in New York and Stephanie Kirchgaessner in Washington

Published: January 13 2008 19:29 | Last updated: January 13 2008 19:29

Merrill Lynch is seeking about $4bn in a second capital raising, as the hole in the US investment bank’s balance sheet continues to grow.

The Kuwait Investment Authority is expected to be a significant investor in the new deal, which could be announced as soon as midweek, according to people familiar with the matter. Other investors could come from Europe.

KIA, which may also invest as much as $2bn or $3bn in Citigroup, is emerging as an large source of rescue finance on Wall Street. Once among the most conservative of sovereign wealth funds, KIA is changing its strategy in order to move more quickly than competitors and seize opportunities amid the turmoil in the US credit markets, these people say. Both Merrill and KIA declined to comment.

Both the price and the terms of the deals at Citi and Merrill are still being negotiated.

FT.com - Read Full Text

[2Design]

1. soo are these foreign bailouts showing us why we are in wars

and how we pick friends and enemies - how many of our corporations are funded from foreign companies or owned by them - this is a tangled web - woven by bureaucrats to go against the people

[flashl]

2. It the new money vehicle introduced to the public is SWF

SWF = Sovereign Wealth Funds.

Now, there is no cause for alarm because Congress is going to investigate.
:sarcasm:

US Lawmakers Focusing On Sovereign Wealth Funds

WASHINGTON -(Dow Jones)- A U.S. government agency has begun an investigation of foreign state-run investment funds at the request of a Senate panel, as lawmakers examine whether the much-needed capital infusions being provided to major banks pose economic or security concerns.

The Government Accountability Office moved forward this week on an investigation into sovereign wealth funds, including the size and types of investments the funds are making in U.S. markets, a spokeswoman said.

The probe, which was requested by a member of the Senate Banking, Housing and Urban Affairs Committee, also will examine what oversight - both international and in the U.S. - is conducted on the funds and what other countries the funds are investing in.

The GAO study was requested by Sen. Richard C. Shelby, R-Ala, last September. A Shelby spokesman said the Alabama Republican feels "it is important to conduct vigilant oversight and understand the issues associated with the major role that sovereign wealth funds play in the global economy."

[nightrider767]

3. Perfect

A worthless company is being bought by a group trying to dump dollars.

A match made in heaven.