By Sean Cronin
EXCLUSIVE: Distressed US stocks present opportunities, says Abu Dhabi Investment Council.
Distressed US banking stocks may be close to their lowest point and could make for ‘attractive’ investment opportunities according to a top official at the investment arm of the Abu Dhabi government.
“Some of these banks have halved in terms of their values and some of them have lost more,” said HE Eissa Mohamed Al Suwaidi, a director at the Abu Dhabi Investment Council, in an interview in the UAE capital.
“Maybe we are at the weakest point for some of these banks. It is an attractive investment opportunity,” he said.
Banks have lost an estimated $400 billion through credit losses and writedowns since defaulting subprime mortgages in the US triggered a global credit crunch.
More than 80,000 jobs have been lost from banks and brokers as the subprime crisis has spread throughout the entire financial services industry.
Abu Dhabi Investment Authority, the world’s richest sovereign wealth fund, last year agreed to invest around $7.5 billion in Citigroup which is in the process of slashing around 13,000 jobs around the world.
Probably just a matter of language, but the use of the word "values" is telling. Price would be a better word, but a lot of banks have truly lost their value, in terms of ethical principles.