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Word: gulf (lookup in dictionary) (lookup stats)
Dates: during 2000-2009
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Perhaps Citi should have slept on Dubai. A year and a half ago, Citigroup became the first U.S. bank to relocate one of its rising stars, Alberto Verme, an investment banking executive, to the booming gulf state. At the time, Citi CEO Vikram Pandit said the move was a sign that the bank was "convinced of the region's long-term and immense growth opportunities...

Author: /time Magazine | Title: Citi's Dubai Mistake: A Sign of More Bad Things to Come? | 12/15/2009 | See Source »

...Middle East and Africa, and Citi stresses he is "one of its highest ranking executives globally"). Mohammed al-Shroogi, who headed Citi's United Arab Emirates operations, left in September. In late November, Dubai World, which is a for-profit development company controlled by the ruling family of the gulf state, indicated that it may have to default on a portion of its $60 billion in loans. The rush to Dubai has left Citi on the hook for billions of dollars of losses in the financially troubled gulf state. According to research firm Creditsights, Citi has made an estimated...

Author: /time Magazine | Title: Citi's Dubai Mistake: A Sign of More Bad Things to Come? | 12/15/2009 | See Source »

...former chairman of Salomon Brothers Asset Management, which was acquired by Citigroup. "Being big everywhere is the business model he has chosen. That means when there are losses anywhere you are going to get hit." Things were booming there back in 2008 when Citi sent Verme to the gulf state - from 2004 through 2008 Citi's revenues from the region grew at a 30% average annual rate. He had run the bank's Latin American operations before being promoted to co-head of investment banking. In 2006, trade publication the Banker named Verme one of the top 10 movers...

Author: /time Magazine | Title: Citi's Dubai Mistake: A Sign of More Bad Things to Come? | 12/15/2009 | See Source »

...government, Citi helped arrange an $8 billion loan for Dubai's state-linked companies. It's unclear how much of the loan Citi held onto. By that time, Citi's own research staff had begun to issue warnings that Dubai was the most vulnerable economy in the oil-rich gulf because of its exposure to real estate and debt. Nonetheless, Win Bischoff, who was Citi's chairman, said at the time of the financing, "This is in line with our commitment to the [U.A.E.] in general, and reflects our positive outlook on Dubai in general...

Author: /time Magazine | Title: Citi's Dubai Mistake: A Sign of More Bad Things to Come? | 12/15/2009 | See Source »

While Dubai's origins are largely a mystery, what is now a Rhode Island--size principality on the Persian Gulf was just a pearl-fishing village when its current rulers, the Maktoum family, took over in 1883. Along with those of other Arab emirates, its fortunes changed abruptly in 1966 with the discovery of oil. But compared with its neighbors, Dubai had limited reserves, prompting its rulers to turn to other industries to fuel their bold economic aspirations. Starting in the 1980s, at the prompting of Sheik Mohammed bin Rashid al-Maktoum, then the crown prince, Dubai fashioned itself into...

Author: /time Magazine | Title: Brief History: Dubai | 12/14/2009 | See Source »

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