Tuesday 17 May 2011

Action over exposed lender is a positive step, not tip of an iceberg

The world has grown accustomed to radical intervention by governments in the banking sector.

Since the financial crisis in 2008, some of the biggest names in global banking, such as Royal Bank of Scotland, Lloyds, Citicorp and many others, have found themselves with the state on their share registers.

Against this backdrop, the action by the Dubai Government in taking over Dubai Bank is not that surprising. It already had strong sovereign connections, being majority owned by a subsidiary of Dubai Holding, itself owned by Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai.

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