!! History Commons Alert, Exciting News

Profile: Alwaleed bin Talal

Alwaleed bin Talal was a participant or observer in the following events:

Citigroup logo.Citigroup logo. [Source: Citigroup]The latest government bailout gives Citigroup bond holders excellent terms and doesn’t provide the bank with new money. Instead, Citigroup cut expenses with the elimination of preferred stock dividends, and also converted shares into common equity at an above-market-value of $3.25, positioning itself to take the first hit if it encounters additional losses. Analysts are predicting that the company’s losses will continue to increase. Since the beginning of 2009, Citigroup’s stock has fallen 78 percent. “Debt holders could eventually be required to participate in further government-led restructuring actions,” Standard and Poor’s says. [Bloomberg, 3/2/2009] Citigroup CEO Vikram Pandit tells investors that increasing the bank’s “tangible” common equity from $29.7 billion to as much as $81 billion should “take confidence issues off the table,” about the bank’s loss absorption ability. The bank lost $27.7 billion in 2008, and is predicted to lose $1.24 billion during the first six months of 2009. “There’s no difference here,” says Christopher Whalen, co-founder of Institutional Risk Analytics, a Torrance, California risk-advisory firm. “It won’t fix revenue, and you’re still going to see loss rates.” Whalen says that the government’s efforts are mainly protecting other financial institutions and foreign goverments that are Citigroup bonds holders. “The taxpayer is funding the operating loss and protecting the bondholders,” Whalen notes. “The subsidy for the banks will become one of the biggest lines in Washington’s budget.”
Government Should Organize Citigroup, AIG Bondholders - Whalen also says it would be better if the government organized Citigroup and insurer American International Group Inc. bondholders, since the insurer received a $150 billion US bailout, and also made a deal with the government to convert some of its debt to equity. US government investment fell by more than 50 percent, and the government plans to convert up to $25 billion of its preferred stock to common shares, gaining a 36 percent stake in the bank. At Friday’s closing price of $1.50, government investment is worth approximately $11.5 billion. The bank itself has a stock market value of $8.2 billion as of market closing on February 27.
Analyst: Investors Should Avoid Citigroup Shares - Richard Ramsden, head of a group of analysts at Goldman Sachs Group, recommends that investors avoid investing in Citigroup shares: “It is unclear whether this is the last round of capital restructuring, which means that existing equity may be further diluted in the future.” The bank’s move to convert preferred shares to common equity led Moody’s Investors Service to adjust its senior debt rating for the bank from A3 to A2. Standard and Poor’s also changed its outlook on the bank’s debt from negative to stable. “Citi will face a tough credit cycle in the next two years, which will likely result in weak and volatile earnings,” S&P analyst Scott Sprinzen says. “We cannot rule out the possibility that further government support may prove necessary.” With the first two Citigroup rescue bailouts, the US Treasury bought $45 billion of preferred stock, and the Federal Reserve and FDIC guaranteed the bank against all but $29 billion of losses on a $301 billion portfolio of assets. With the third bailout, the Treasury, the Government of Singapore Investment Corporation, Saudi Prince Alwaleed bin Talal, and other preferred stockholders, agreed to take common stock at $3.25 a share, giving up dividends. The chairman of the House Ways and Means Committee, Charles Rangel (D-NY), says: “The administration and the past administration have tried so many different ways that we can only hope and pray that this time they get it right. It seems like with the banks it is a never-ending thing.” [Bloomberg, 2/28/2009]
Third US Rescue Forces Citigroup Board Changes - The Obama administration demonstrated its willingness to force changes on executives at top banks that receive taxpayer-funded rescue packages by pressing Citigroup to reorganize its 15-member board with new, more independent members. The move sends a message to Wall Street that there are consequences when taxpayer dollars are used to save them. “The government is the new boss, and the new executive committee is no longer on Park Avenue,” says Michael Holland who, as chairman and founder of New York’s Holland & Co., manages nearly $4 billion in investments. [Bloomberg, 3/2/2009]

Entity Tags: Government of Singapore Investment Corporation, Christopher Whalen, Charles Rangel, Alwaleed bin Talal, AIG (American International Group, Inc.), Federal Deposit Insurance Corporation, Vikram Pandit, US Department of the Treasury, Citigroup, Richard Ramsden, Moody’s Investors Service, Standard & Poor’s, Michael Holland, Institutional Risk Analytics, Scott Sprinzen, US Federal Reserve

Timeline Tags: Global Economic Crises

Author Jerome Corsi, who has made a number of disproven and debunked claims concerning President Obama’s citizenship (see August 1, 2008 and After, August 15, 2008, October 8, 2008, and October 9, 2008), now claims that he has “proof” Obama’s attendance and exemplary performance at Harvard Law School were engineered by a Saudi prince through the auspices of an African-American Muslim radical. He points to Obama’s decision not to release his college transcripts as circumstantial evidence (see September 11, 2008), saying that decision “prevents resolution of a continuing controversy over whether radical Islamic influences promoted his admission and financed his legal education there.” The “continuing controversy” centers on a lawyer named Percy Sutton, who claims that Islamic radical Khalid Abdullah Tariq al-Mansour, “one of the world’s wealthiest men,” asked him to write a letter of recommendation to Harvard Law School for then relatively unknown Barack Obama. Sutton says al-Mansour, a Saudi citizen, introduced him to Obama, and says al-Mansour was raising money for Obama to attend Harvard. Sutton says al-Mansour was a “principal adviser” to Saudi Prince Alwaleed bin Talal, who, Sutton says, actually engineered Obama’s acceptance to Harvard. According to Sutton, he was told in a letter from al-Mansour: “There’s a young man that has applied to Harvard. I know that you have a few friends left there because you used to go up there to speak. Would you please write a letter in support of him?” Sutton says he did write the letter, and told friends at Harvard, “I thought there was going to be a genius that was going to be available and I certainly hoped they would treat him kindly.” The Obama campaign denied the story during the 2008 presidential campaign. Sutton, who is in his 80s and apparently suffers from some sort of senile dementia or memory loss that precludes him being contacted by Corsi or other members of the press, has made his allegations in a YouTube video that Corsi cites as his “proof.” In 2008, Politico reporter Ben Smith contacted al-Mansour, who confirmed Sutton was “a dear friend, his health is not good” and said he’s sure Sutton wrote a letter for someone else, “and he got it confused.” Corsi has requested that the White House release all of Obama’s law school records to “resolve the issue.” Al-Mansour, Corsi claims, was originally Don Warden, a member of the 1960s Black Panthers. [WorldNetDaily, 7/21/2009]

Entity Tags: Percy Sutton, Alwaleed bin Talal, Barack Obama, Jerome Corsi, Ben Smith, Harvard University Law School, Don Warden, Khalid Abdullah Tariq al-Mansour

Timeline Tags: Domestic Propaganda

Michelle Goldberg.Michelle Goldberg. [Source: Guardian]Author and journalist Michelle Goldberg examines the racial prejudice behind Donald Trump’s recent spate of attacks on President Obama’s citizenship and integrity (see February 10, 2011, March 17, 2011, March 23, 2011, March 23, 2011, March 28, 2011, March 28-29, 2011, March 30, 2011, April 1, 2011, April 1, 2011, April 1-8, 2011, April 7, 2011, April 7, 2011, April 7-10, 2011, April 7, 2011, April 7, 2011, April 10, 2011, April 14-15, 2011, and April 21, 2011). Trump has recently alleged that Obama was a “terrible student” in college who would not have made it into Ivy League universities such as Columbia and Harvard without some sort of racial bias (see April 26, 2011). Goldberg says Trump is mining the “fever swamps” of the far-right conspiratists for his allegations. Goldberg tracks claims about Obama’s educational history back to a 2008 editorial in the Wall Street Journal that challenged Obama to release his college transcripts to prove that he was not a “mediocre student who benefited from racial preference” (see September 11, 2008). The Journal overlooked the fact that Obama made the Harvard Law Review and graduated with honors from that university’s law school. In recent years, “birther” lawyer Orly Taitz, who has introduced forgeries of Kenyan “birth certificates” into evidence in court as “proof” that Obama is not a US citizen (see August 1-4, 2009), has issued a number of allegations about Obama’s college years. Currently she claims he must have been a foreign exchange student in order to get into Columbia University, saying: “That might be one of the reasons why his records are not unsealed. If his records show he got into Columbia University as a foreign exchange student, then we have a serious issue with his citizenship.” She also disputes Columbia’s records of Obama’s graduation from that university, saying that Obama left school after nine months, and offers as proof a document from the National Student Clearinghouse that lists Obama’s dates of attendance as September 1982 to May 1983. However, Kathleen Dugan of the National Student Clearinghouse says Taitz’s search inputs were incorrect, and thusly yielded incorrect data. Taitz also continues to promote the debunked theory that Obama’s 1983 visit to Pakistan proves he is not a citizen (see Around June 28, 2010), and speculates that he visited Pakistan, not for a month or so, “but a year and a half.” Taitz ties the disparate threads of her conspiracy—Obama the poor student benefiting from racial bias, Obama the foreign national, Obama the closet Muslim—into a single theory: she claims that Saudi Prince Alwaleed bin Talal engineered Obama’s acceptance into Harvard Law School, paid his way through school, and worked behind the scenes to get Obama the position of editor of the Law Review. The Saudi prince was introduced to Obama by African-American Muslim radical activist Khalid Al-Mansour, Taitz says (see July 21, 2009). She confirms that she has been in contact with Trump and has forwarded all of her information to him. Goldberg writes: “It’s easy enough to see why this particular narrative has endured. Not only does it position the president as a Muslim Manchurian candidate with longtime ties to agents of the caliphate, but it also assures resentful whites that this seemingly brilliant black man isn’t so smart after all. In that sense, it’s of a piece with the right-wing obsession with Obama’s use of a teleprompter, and with the widespread suspicion that he didn’t really write the eloquent Dreams From My Father, a claim Trump recently made at a Tea Party rally. Obama, in this view, is both sinister and stupid, canny enough to perpetrate one of the biggest frauds in American history but still the ultimate affirmative-action baby. Trump is clearly not as intelligent as Obama, but he’s not an idiot, either. When he blows this particular dog whistle, he knows exactly what the Republican base is hearing.” [Daily Beast, 4/26/2011]

Entity Tags: National Student Clearinghouse, Alwaleed bin Talal, Barack Obama, Donald Trump, Kathleen Dugan, Wall Street Journal, Orly Taitz, Khalid Abdullah Tariq al-Mansour, Michelle Goldberg

Timeline Tags: Domestic Propaganda

Ordering 

Time period


Email Updates

Receive weekly email updates summarizing what contributors have added to the History Commons database

 
Donate

Developing and maintaining this site is very labor intensive. If you find it useful, please give us a hand and donate what you can.
Donate Now

Volunteer

If you would like to help us with this effort, please contact us. We need help with programming (Java, JDO, mysql, and xml), design, networking, and publicity. If you want to contribute information to this site, click the register link at the top of the page, and start contributing.
Contact Us

Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike