Talks of sidelined sovereign wealth aside, the amassed savings of the Gulf have re-emerged as a major capital source for some European banks – if not U.S. ones. Barclays turned to Qatar - Qatar holding, a subsidiary of the Qatar Investment Authority and an investment vehicle of Qatar’s Sheikh Hamad, will collectively almost double the stake the two investors accrued early this summer to almost 15.5%. And Sheikh Mansour of Abu Dhabi will take a 16% stake – in a personal capacity.
Such funds were extracted at a cost - the coupon payments are among the highest ever (14%). Even[...]