More than 50% of its profits come from emerging markets juz when emerging markets are losing their attractiveness to global investors.
Given Cit’s record of losing serious money by jumping into markets late (think sub-prime, and lending to finance LBOs, US property (in the 80s) and Latin America (in the 80s too), S,poreans should be concerned., given GIC’s 5%(?) odd stake in Citi,
The Fed notified financial institutions that passed a second round of stress tests that they can begin returning money to their shareholders, The results are confidential but already some US banks are saying they will raise dividends this year. Among them are Citi rivals JPMorgan and Wells Fargo. Citi says that only in 2012, will it consider raising its dividends, It got a lousy rating?
And I now know why the executive director of GIC is looking to increase US exposure. Citi is not giving GIC exposure into the US market.
Too bad Temasek cut its losses on BoA (losing a reported US$4.6bn). If it still had BoA shares, it could have sold them to GIC. Still at a loss but enabling S’pore Inc to reap the upside.