Nov. 27 (Bloomberg) -- Royal Bank of Scotland Group Plc was the biggest underwriter of loans to Dubai World, the state company seeking to reschedule debt, while HSBC Holdings Plc has the most at risk in the United Arab Emirates, according to JPMorgan Chase & Co.
RBS, the largest U.K. government-controlled bank, arranged $2.3 billion, or 17 percent, of Dubai World loans since January 2007, JPMorgan said in a report today, citing Dealogic data. HSBC, Europe’s biggest bank, has the “largest absolute exposure” in the U.A.E. with $17 billion of loans in 2008, JPMorgan said, citing the Emirates Banks Association. Abu Dhabi Commercial Bank PJSC may be owed $1.9 billion by Dubai World, making it the largest creditor outside the emirate, said two people familiar with the companies.
“The market is very nervous about exposure to Dubai and RBS’s name has been associated with it as both a lender and a book runner,” said David Williams, a banks analyst at Fox-Pitt Kelton Ltd. in London. “People are concerned it’s going to produce a new wave of losses. Dubai is driving everything in the market at the moment.”
snip
U.K. Prime Minister Gordon Brown’s government is monitoring the situation in Dubai, his spokeswoman said today.
“Clearly the restructuring announcement has caused disruption and uncertainty in world markets,” Brown’s spokeswoman Vickie Sheriff told reporters in London.
I think my original comment was being typed at the same time your blog post was being written. After that, I just looked for the old images I had seen without checking for new updates or posts here.
Also, I used html code to publish the photos but when I previewed, they came up as dead links. My son, who is very proficient in html and does a lot of website design, is visiting for the holiday. I showed him my code and he couldn't see anything wrong. Yet, the photos would not display. So, I just posted the links and then hurried to help out with the holiday feast.
I hope that you know that I really try to publish posts and comments that "look good" and use proper grammar and spelling. I still don't know why the links didn't just appear as the photos. I agree with you, well formatted and displayed posts are much more enjoyable to read.
is that there is nothing like the concept of bankruptcy in local law, as an article from this spring talking about a Western expats experience explained it:
"It was an adult Disneyland, where Sheikh Mohammed is the mouse," she says. "Life was fantastic. You had these amazing big apartments, you had a whole army of your own staff, you pay no taxes at all. It seemed like everyone was a CEO. We were partying the whole time."....
"Before I came here, I didn't know anything about Dubai law. I assumed if all these big companies come here, it must be pretty like Canada's or any other liberal democracy's," she says. Nobody told her there is no concept of bankruptcy. If you get into debt and you can't pay, you go to prison.
Do you suppose that this means that they'll now put the Emir into prison? The entire country.
The HTML is over in the user guide and to find the actual image, right click on the image in firefox and say "copy the image location" and that will give you the link.
i.e.
You need to format it with the IMG tag, see the user guide, right hand side.
Over on Zero Hedge they are showing already contagion happening around the globe.
I wrote about contagion and reference it often...
yet another "they have no frickin' clue" on how national economies, global markets interact.
I just love this shit. They architect, against the will of most nations, this grand globalization scheme and they have no idea how it really all interacts. Way to go Rubin and proteges!
A sovereign default is deadly serious due to contagion and that's regardless of their world contributions. The fact Dubai has such a lock on oil, markets I can only imagine this would be much worse than 1998, Russia.
Esp. considering how fragile the global economy is right now.
Some may remember this article which I linked to in a blog post last spring. If not, it's worth revisiting it now.
The thing about Dubai is that it is the 2nd largest of the 7 emirate states which make up the UAE. Yet, almost none of the oil reserves are located in Dubai. The richest deposits are in Abu Dhabi. But Dubai is uniquely located on the Persian Gulf and Sheikh Al-Mahtoum was perhaps the most visionary of the sheikhs in the UAE. He established the most socially liberal emirate state and attracted enormous investments from everywhere. Dubai is also a major transshipment point for world trade. I believe that around 1999, something like 35% of all international trade went through Jebel Ali Port in Dubai. The growth was breathtaking and the level of decadence was unprecendented, maybe throughout the history of mankind.
Several weeks ago I saw a post somewhere that showed an aerial view of Dubai sometime in the 1990s and then again a few years later. I'll look back through my history to see if I can find it, then you will have some appreciation for what has happened in Dubai. I was there twice and it is beyond words for me to try to describe it. But for sure, this debt payment default is a serious concern. They say that the bigger they are, the harder they fall. A Dubai default might be a bigger deal than Bear Stearns.
I put that in the subject because I read this yesterday but thought it was just a state owned large construction project, not the entire nation, so I didn't post it.
How many "Modern Marvels" and "Discovery" shows have we seen on Dubai and they are loaded with oil. So this is truly amazing.
Doesn't Islam has rules about debt too, so I would imagine that's even more reverberating about the "evils of the West".
Just earlier we had some ugliness with someone else, but honestly, I guess I should call them "call outs" instead of personal attacks but they are directed at one person, but those guys went after him and he them.
I guess I'll stay out of this one after all. I'm still shocked that NDD suddenly changed and said we're a bunch of Doom & Gloomers and stopped writing on EP.
On the other hand, if NDD had written some of those pieces on EP, the readers would have slammed him right then and there.
Anywho, do what you will, you have a good point and I'll just stay out of all of it.
I heard there was such a study authorized and funded by Congress. An agency within the Commerce department did it and
the Bush administration kept it under wraps....
“So, what is it with these personal attacks? Let's keep that off of here shall we?”
Sorry, but I did not think mine a “personal attack”. It was rhetorical, but that is a writing style to give emphasis to a moral argument. Facts and statistics are the material of economics. But morality is the end result.
Bondadd is a significant public figure that has influence on public opinion though the readers of his blog and more importantly in Huffington Post articles and, as I recall, radio. It seems to me that he, and others, must be responded to not only with facts and numbers but with drawing out the ethical implications of their writing.
Having said that, I respect the fact that this is your blog and I will conduct myself accordingly.
Well, it's supposed to mean 3rd world nations which are rapidly growing and industrializing...
Unfortunately the WTO gives EEs preference in trade and this is the most absurd. Last I checked China is still classified as a EE, which gives them enormous advantages in terms of setting tariffs.
Obviously this is absurd since China is slated to be the world's #1 economy in about 5 more years.
So, what is it with these personal attacks? Let's keep that off of here shall we? Frankly, I am not amused by Bonddad or NDD's personal attack posts that I've seen and frankly, one can argue the facts but some of these things....well, aren't sticking to "when in doubt use your calculator" which is the EP motto.
So, back to this claim, obviously the status quo is not ok, I'm not sure if that's even a technical recovery, considering the growth in population.
So, us realists, we'll just stick to the data and stats....just because reality is doom & gloom doesn't mean one can wish it all away.
RBS Led Dubai World Lenders; HSBC Most at Risk in UAE (Update1)
snip
If you try to link to the image directly it doesn't display, but if you right click on the image, you get the real URL for the image that works.
I found that out "borrowing" some Calculated Risk graphs on housing.
I think my original comment was being typed at the same time your blog post was being written. After that, I just looked for the old images I had seen without checking for new updates or posts here.
Also, I used html code to publish the photos but when I previewed, they came up as dead links. My son, who is very proficient in html and does a lot of website design, is visiting for the holiday. I showed him my code and he couldn't see anything wrong. Yet, the photos would not display. So, I just posted the links and then hurried to help out with the holiday feast.
I hope that you know that I really try to publish posts and comments that "look good" and use proper grammar and spelling. I still don't know why the links didn't just appear as the photos. I agree with you, well formatted and displayed posts are much more enjoyable to read.
Happy Holiday All!!
Oh, global markets crashing. Who is next - Iceland, Latvia? Great, I think I'll back to my turkey snooze.
RebelCapitalist.com - Financial Information for the Rest of Us.
is that there is nothing like the concept of bankruptcy in local law, as an article from this spring talking about a Western expats experience explained it:
Do you suppose that this means that they'll now put the Emir into prison? The entire country.
Oh. the irony.
Quite witty! ;-)
Firstly, did you see the latest post in the list?
Secondly, do you know how to post images?
The HTML is over in the user guide and to find the actual image, right click on the image in firefox and say "copy the image location" and that will give you the link.
i.e.
You need to format it with the IMG tag, see the user guide, right hand side.
The pictures were posted at Sudden Debt earlier this month and they are truly dramatic.
The first link is Dubai 1990:
http://2.bp.blogspot.com/_2fuk3iGxQxM/Svj1-emaghI/AAAAAAAACyY/HeK36F17Id...
Here is the link for a view from the same spot taken in 2008:
http://4.bp.blogspot.com/_2fuk3iGxQxM/SvkC6CVUnYI/AAAAAAAACyg/CDyttUBe21...
Finally, this link shows what Dubai looks like today from space:
http://2.bp.blogspot.com/_2fuk3iGxQxM/SvhCetOJnTI/AAAAAAAACyQ/tUyl7JDSUG...
Austria 1931 bankruptcy
Over on Zero Hedge they are showing already contagion happening around the globe.
I wrote about contagion and reference it often...
yet another "they have no frickin' clue" on how national economies, global markets interact.
I just love this shit. They architect, against the will of most nations, this grand globalization scheme and they have no idea how it really all interacts. Way to go Rubin and proteges!
A sovereign default is deadly serious due to contagion and that's regardless of their world contributions. The fact Dubai has such a lock on oil, markets I can only imagine this would be much worse than 1998, Russia.
Esp. considering how fragile the global economy is right now.
Some may remember this article which I linked to in a blog post last spring. If not, it's worth revisiting it now.
The thing about Dubai is that it is the 2nd largest of the 7 emirate states which make up the UAE. Yet, almost none of the oil reserves are located in Dubai. The richest deposits are in Abu Dhabi. But Dubai is uniquely located on the Persian Gulf and Sheikh Al-Mahtoum was perhaps the most visionary of the sheikhs in the UAE. He established the most socially liberal emirate state and attracted enormous investments from everywhere. Dubai is also a major transshipment point for world trade. I believe that around 1999, something like 35% of all international trade went through Jebel Ali Port in Dubai. The growth was breathtaking and the level of decadence was unprecendented, maybe throughout the history of mankind.
Several weeks ago I saw a post somewhere that showed an aerial view of Dubai sometime in the 1990s and then again a few years later. I'll look back through my history to see if I can find it, then you will have some appreciation for what has happened in Dubai. I was there twice and it is beyond words for me to try to describe it. But for sure, this debt payment default is a serious concern. They say that the bigger they are, the harder they fall. A Dubai default might be a bigger deal than Bear Stearns.
to have some fun on Thanksgiving. See last blog post.
Interesting story, indeed.
A nation supported by the uber-wealthy defaulting?
Not a good sign.
and now this.
Right now, CDSes soar....well, that means huge payouts from somewhere...
The models claim no one will collect on these little insurance policies and we haven't done a damn thing to regulate them.
What are we looking at here, not just a "double dip" but a triple bomb?
I put that in the subject because I read this yesterday but thought it was just a state owned large construction project, not the entire nation, so I didn't post it.
How many "Modern Marvels" and "Discovery" shows have we seen on Dubai and they are loaded with oil. So this is truly amazing.
Doesn't Islam has rules about debt too, so I would imagine that's even more reverberating about the "evils of the West".
Just earlier we had some ugliness with someone else, but honestly, I guess I should call them "call outs" instead of personal attacks but they are directed at one person, but those guys went after him and he them.
I guess I'll stay out of this one after all. I'm still shocked that NDD suddenly changed and said we're a bunch of Doom & Gloomers and stopped writing on EP.
On the other hand, if NDD had written some of those pieces on EP, the readers would have slammed him right then and there.
Anywho, do what you will, you have a good point and I'll just stay out of all of it.
I heard there was such a study authorized and funded by Congress. An agency within the Commerce department did it and
the Bush administration kept it under wraps....
“So, what is it with these personal attacks? Let's keep that off of here shall we?”
Sorry, but I did not think mine a “personal attack”. It was rhetorical, but that is a writing style to give emphasis to a moral argument. Facts and statistics are the material of economics. But morality is the end result.
Bondadd is a significant public figure that has influence on public opinion though the readers of his blog and more importantly in Huffington Post articles and, as I recall, radio. It seems to me that he, and others, must be responded to not only with facts and numbers but with drawing out the ethical implications of their writing.
Having said that, I respect the fact that this is your blog and I will conduct myself accordingly.
Well, it's supposed to mean 3rd world nations which are rapidly growing and industrializing...
Unfortunately the WTO gives EEs preference in trade and this is the most absurd. Last I checked China is still classified as a EE, which gives them enormous advantages in terms of setting tariffs.
Obviously this is absurd since China is slated to be the world's #1 economy in about 5 more years.
to maintain the status quo, GDP must grow 1.5-2%. See productivity, jobs, outsourcing.
So, what is it with these personal attacks? Let's keep that off of here shall we? Frankly, I am not amused by Bonddad or NDD's personal attack posts that I've seen and frankly, one can argue the facts but some of these things....well, aren't sticking to "when in doubt use your calculator" which is the EP motto.
So, back to this claim, obviously the status quo is not ok, I'm not sure if that's even a technical recovery, considering the growth in population.
So, us realists, we'll just stick to the data and stats....just because reality is doom & gloom doesn't mean one can wish it all away.
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