U.S. BANKS GO TO AFRICA, BEGGING
Jun 10 (GIN) – Having exhausted most private equity and soverign wealth funds, troubled U.S. banks are now planning to turn to Algeria, Angola, Libya and Zimbabwe for 11th hour bailouts, the Wall St. Journal reports.
“Selling stakes to funds of authoritarian or unstable regimes doesn’t quite mesh with Wall Street’s lofty image of itself,” the paper wrote. “But (the banks) created this mess, and beggars can’t be choosers.”
Buyers of shares in U.S. banks have seen their value plummet and traditional overseas investors are reluctant to spend more on a losing proposition. While Africans, many with great reserves of oil wealth, may seem like a ripe market, few countries have shown an interest in building U.S. portfolios during this unfolding credit crunch.