The subprime meltdown has worsened to the extent that U.S. based banks incluidng UBS, Citigroup and Morgan Stanley have been forced to raise over $35 billion in new capital in recent months to offset writedowns in subprime mortgage-backed securities. The bulk of new capital is coming from sovereign wealth funds of foreign governments stretching from Asia to the Middle East. Some recent investments include:
UBS - Singapore's GIC and Mideast investor - December 2007 - $11.2 Billion
Citigroup - Abu Dhabi Investment Authority - November 2007 - $7.5 Billion
Morgan Stanley - Singapore's GIC - December 2007 - $5.5 Billion
Blackstone Group - China Investment - June 2007 - $ 3.0 Billion
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