With No US Investors, Sovereigns Get Ready To Pour More Cash Into Financials (C)(MER)

Banking, finance, and taxes

Published: June 4, 2008 7:25 am

If US financial companies go shopping for more cash as the credit crisis drags on, Kuwait wants the world to know it has a big bank account. A good deal might just pull some of that capital in.

Althougth Kuwait has not mentioned investing in Lehman (LEH), the investment bank better hope for some interest. Its stock is taking a pounding over the fact that it needs money and may not be able to raise it. For $17 billion, Kuwait can buy the whole company.

But, Kuwait seems to want somewhat safer bets, although nothing looks safe right now. According to Reuters, "State-owned Kuwait Investment Authority (KIA) is looking at more investments in the financial sector and might consider raising its stakes in U.S. banks Citigroup (C) and Merrill Lynch (MER)."

Wall St. must wonder why no US cash is coming forward to rescue the likes of Lehman or shore up Citi and Merrill.

Perhaps they know better

Douglas A. McIntyre

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