December 3, 2009


Sovereign wealth funds meet Shariah-compliant finance - What could possibly go wrong?

Posted by Kate at December 3, 2009 12:17 AM

Citigroup took $10s of Billions in TARP funds and lent $8 Billion to Dubai, which means under SCF that they bought a piece of Dubai.

I guess that means the U.S. government could build a naval base there if they saw the need.

Oh wait, that TARP money is actually owed to China.

Posted by: Oz at December 3, 2009 1:06 AM

There's also this:

Posted by: allan at December 3, 2009 1:12 AM

Health Risks (24 items)

Top of the list - Underweight

Bottom of the list - global warming/climate change

Posted by: ron in kelowna ∴ at December 3, 2009 2:00 AM

Oz, why would Citigroup "lend" $8,000,000,000 (is that enough zeroes?) to Dubai? Why would anyone lend to Dubai? my economics basically stops at my front doorstep. "If we can't afford it, we don't get it"

Posted by: kelly at December 3, 2009 2:33 AM

After Climategate and all hell breaking loose, kind of like icing on the cake.

Posted by: DSV at December 3, 2009 2:47 AM

Kelly, read this:

Posted by: Oz at December 3, 2009 2:58 AM

Among other things, I question the wisdom of entrusting our ports to Dubai.

Posted by: Black Mamba at December 3, 2009 3:16 AM

Oz, I'm not doubting you but the sheer scope of it is utterly mind boggling. simply mind boggling.

Posted by: kelly at December 3, 2009 5:32 AM

Dubai? Dubious!

Posted by: larben at December 3, 2009 8:24 AM

This place on the map is called 'Camp Naivlette',-79.781762&num=1&sll=49.891235,-97.15369&sspn=16.71875,56.536561&hl=en&ie=UTF8&ll=43.648544,-79.781867&spn=0.005962,0.009302&z=17

Everybody who believes in ethical finance belong there.

Posted by: Aaron at December 3, 2009 8:55 AM

Sharia compliant finance is a fact of life in the Middle East and its push for Dubai to be a World Financial Center. Indonesia and Malaysia also has sharia compliant financial products. GE recently issued compliant Bonds. They are not a threat to anyone any more than western financial products, but they do pose a risk for the uneducated investor becuase they are structured differently.

I would be outraged if sharia compliant loans and bonds start being issued here.

Muslims deserve to invest in failing businesses that can be usurped by democratic or not so free Governments as much as we in the west are permitted to.

Why should they not be pushed aside in favour of political paybacks and future favours and lose their money at the stroke of a leader's pen in the name of the collective?

The one case I know of that went to court was resolved in the bondholders favour. Just like we USED to do in the west.

Posted by: Illiquid Assets at December 3, 2009 9:43 AM

Arabian tinpot kingdoms awash in petrodollars. Huge western pension funds awash in contributions. Both need to leverage their investments by borrowing even more so they can invest in risky real estate and high return houses of cards.

Let me try that again: Arabian tinpot kingdoms......

Oh! Corruption! Fortunes made! Just like sub-prime mortgages! Green utilities! Cap and trade! Climate change! Now I get it!

Posted by: Sgt Lejaune at December 3, 2009 1:58 PM

Something about paying the piper and calling the tune...

Posted by: Wayne at December 3, 2009 2:58 PM

scatch a ponzi scheme, find a nest of lefties

t'is the leftist attitude that allows such nonse4nse on OUR shores

I read about sharia finances a while ago, and thought WTF???

the west should stay away fron such foolishness!!

Posted by: GYM at December 3, 2009 4:15 PM

I would like to see them fail and go back to a standard of living before oil was discovered.

Posted by: Rob C at December 3, 2009 5:10 PM

Forget about the West being the centre of greed...

Posted by: Osumashi Kinyobe at December 3, 2009 5:22 PM

Bizarre as it may seem this does not constitute too much of a problem. Dubai World runs all the ports----take it as defaulted collateral.
As Hitler remarked about the Vatican----" many divisions do they have?"
Despite their track-record, most americans would be more comfortable with Citi-Bank, rather than Dubai, running the ports.

Posted by: sasquatch at December 3, 2009 7:40 PM