Kuwait Fund Sells Citi Holdings, Is BofA Next?

Not everyone was deceived by Ken Lewis' announcement about the LATE repayment of bailout funds received by Bank of America…

"DUBAI, United Arab Emirates – Kuwait's sovereign wealth fund said on Sunday, December 6, 2009 that it booked a profit of $1.1 billion by selling the stake it took in Citigroup Inc. less than two years ago when the banking giant was strapped for cash.

The Kuwait Investment Authority said in a statement it sold the preferred shares after converting them to common stock for $4.1 billion. That works out to a gain of nearly 37 percent on its $3 billion investment.

Calls to the Kuwait fund for further details went unanswered. A Citi spokesman declined to comment.

Gulf Arab nations' sovereign wealth funds have been heavy investors in U.S. and European companies, using their oil wealth to buy large stakes in companies ranging from Citi to Germany's Volkswagen AG and Mercedes-Benz parent Daimler AG.

The KIA joined other big investors — including the Government of Singapore Investment Corp. and longtime shareholder Prince Alwaleed bin Talal of Saudi Arabia — in pumping some $12.5 billion into Citi in January 2008. At the time, the bank was reeling from a huge drop in the value of its mortgage holdings.

At the same time it made its Citi investment, the fund took a $2 billion stake in Merrill Lynch, which also needed cash as a result of the credit crisis.

Merrill was later bought by Bank of America Corp., which last week surprised investors by paying back $45 billion in federal bailout money.

Analysts say that move puts pressure on Citi and other banks that tapped U.S. government aid to follow suit, even though they still could face further losses as consumers struggle to pay their bills.

In September, the KIA said it had no intention of selling its holdings in either Citi or Bank of America in the short term because its investment policies are based "on a long-term vision."

Kuwait took its stake in Citi last year after another Gulf fund, the Abu Dhabi Investment Authority, paid $7.5 billion for a 4.9 percent stake in the company. ADIA's holdings, known as "equity units," will begin to convert into ordinary shares starting in March next year.

A spokesman for the Abu Dhabi sovereign wealth fund, the world's largest, declined to comment on plans for its Citi stake."

Bank of America: Locks Woman Out "By Mistake" (?)

" Fri Dec 4, 7:56 am ET

TRENTON, N.J. – A New Jersey woman returned home from Thanksgiving with family to find the locks changed days after she avoided foreclosure.

Bank of America says it made a mistake.

Nina Morra was locked out of her fully furnished Trenton home for three days by an inspector hired by the bank.

The 57-year-old was away when the inspector showed up on Nov. 22. Bank of America spokeswoman Jumana Bauwens says the inspector changed the locks because he thought the dwelling was vacant.

Morra had received a letter from the bank days earlier saying she had been accepted into a new payment program.

The bank spokeswoman says she thinks the lockout occurred because the timing was so close.

Morra became delinquent on her mortgage when she suffered a stroke in January".

Truth to be told, mistakes are the norm for the Bank of America.

But was this a mistake? Is it possible some Cheronda Guyton wannabe didn't have ideas?

The Bank of America needs a top to bottom reform. Paying back their BAILOUT money and Ken Lewis' departure are just the tip of the iceberg.

Employees such as Marcus Smith need to know, and recognize that the Bank of America was bailed out, and that without the bailout money, it would have failed (it continues to fail, but in other ways).