Friday, November 9, 2007

One Prince ousts another...

There is an excellent interview at the Fortune magazine about the resignation of Charles Prince III, the Citibank chief (who stepped down after announcing a huge write-off of 6B USD due to subprime losses and then three weeks later he came back to augment that amount with another 8-11 B USD, for kicks). Saudi Prince Alwaleed, a maverick financier and businessman with a shedload of money had an interview with the Fortune magazine that published here. Makes an excellent reading and provides some insight about how monsters like the Citigroup are being run nowadays and who's throwing money on their laps.

Some trivia that you can easily find out by reading the article. Prince Alwaleed, 'self-made' maverick investor, ranked #8 of the world's richest per the Forbes list with a net worth of 20B USD, owns 3.6% of Citigroup, being its largest single shareholder. He accumulated his position, he claims, at an average 2,75 USD per share. At the current Citigroup bearish position of 32,9 USD a share (yesterday's close), Alwaleed has already achieved a return of 9x on his investment. He made in other words something close to 5 Billion USD on his initial investment. And, as the largest shareholder, he can pull strings behind the CITI mgt curtains anyway he chooses. No wonder that top C executives know their way thru the Riyadh, Saudi Arabia backstreets better than their own native village backyards.

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