Credit Crunch Reshapes Map of Banking Power |
| Wall Street Journal - Dec 11, 2007 |
For cash-rich investors in Asia and the Middle East, the credit crunch is proving to be a defining moment.
The broad pain caused by U.S. subprime mortgages -- as well as demand for capital for day-to-day operations and acquisitions -- is rapidly reshaping the global banking landscape, and these newfound investors are seizing the day. Western banks have taken in capital investments from these sources to the tune of $46 billion this year, with the potential for trillions of dollars more in coming years.
Monday, Swiss bank UBS AG, reeling from increasing subprime losses it identified in the past week, said it would sell a 10.8% stake to an investment arm of the Singapore government as well as a Middle Eastern investor that UBS didn't name. UBS's pact with the two investors was hashed out over a matter of days, as the bank raced to determine the extent of losses that followed its aggressively ramping up the business of underwriting risky debt pools known as collateralized debt obligations.
Read Full Article from Wall Street Journal
- Posted: 2007-12-11 10:17:08
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