Citigroup Bailed Out by Saudi Prince & Foreign Companies

The world's 13th richest persons, Saudi Prince Alwaleed bin Talal, is coming to the financial aid of Citigroup - one of the world’s mightiest banks.

Why? Because Citigroup is one of the big losers in the subprime mortgage scandal - to the tune of $22.2 billion in bad loans and mortgages - $9.83 billion in the fourth quarter of 2007. Actually Citigroup is seeking a total of $12.5 billion to strengthen its balance sheet.  

But this isn't the first time the Saudi billionaire has come to the aid of Citigroup. Back in 1991 he invested $590 million due to loan losses suffered in the U.S., along with the Latin American market.

Prince Abdullah, is the largest Citigroup "individual shareholder" with 3.6% ownership of the biggest U.S. bank by assets through Kingdom Holding - which the Prince controls.

Another large individual investor is Sanford I Weill, Citigroup's former chairman. The two largest individual shareholders have a good relationship - so good in fact that the Prince Abdullah and Weill met privately to oust then chairman Charles O. Prince III, however the chairman resigned on his own late last year - at least that's how the story goes.    

Other investors include the government of Singapore with a $6.88 billion investment, the Kuwait Investment Authority, the largest company shareholder - Capital Research & Mgmt., and the New Jersey Division of Investments.

At the heart of this billion dollar loss are 4,000 layed off employees - and it is rumored that Citigroup will lay off even more in the coming months.