Global banking crisis is the possibility of a millionaire?

Turbulence in financial markets, some of the super-rich in search of possible transactions. But it is not without risk, says Stephen Wall

Global banking crisis, his high-profile victims, and the flight of "Financial Statements". However, if you have money, which means that billions, it seems that there are several possibilities, and the famous millionaire ranks realized that with both hands.

Despite the earlier cry of pain, global banking giants have been assured in the hands of Arabic, Chinese and Singapore sovereign fund last cries, the state of the international financial world, have to answer a few of world's richest people own the world

Outstanding in the past month have been concluded a new agreement on a well-known investor and, depending on where and when you're the world's richest person, Warren Buffett. Through his holding company Berkshire Hathaway, Buffet reached an agreement to buy $ 5 billion (E3.9bn) of preferred shares in major Wall Street investment bank, sorry bank Goldman Sachs

Sacks appeal
The agreement also includes warrants to purchase additional buffet at $ 5 billion ordinary shares at a later date. Historically, Buffet warned against investing in finance, but also calling Goldman, at a time when their stocks caught up in negativity in the areas of finance, is a testament to the strength of the bank.

Mr. Buffet not only millionaire in the field or possible chances. Russian billionaire Mikhail Prokhorov has acquired a 50 percent share in the realization of the Russian investment bank Renaissance Capital for $ 500 million. Mr. Prokhorov, also in the light of the continuing decline in the market in Russia may have korobochny own business - only a year ago, Renaissance is estimated at $ 4BN.

His fall from high altitude was the result of global uncertainty and, in particular in relation to Russia, the current investor panic fueled by falling oil prices margins, liquidity concerns and fears over potential losses, particularly in banking shares.

Of course, the interest of maintaining super-rich banks, is not new, we are here several times before. Perhaps the highest profile example of our time is to save Citi in early 1990, Saudi Prince Al-Waleed Bin Talal Bin Abdulaziz Al Saud. Prince Al-Waleed has imposed $ 590m in a time known as Citicorp for about 15 percent of the population, when the game was at a price of 9 dollars. Citi-remains the largest shareholder in Abu Dhabi's investment arm paid 7.5 billion dollars to 4.9 per cent.

However, if it is a possibility, there is a danger that, as two recent examples highlight standout. The most dramatic was the British billionaire investor Joseph Lewis, of course, a place similar, but more short-term option at Bear Stearns in September 2007.

Mr. Lewis has invested $ 1 billion, the fifth-largest investment bank in the U.S. at the time that his actions were trading $ 100. If then fell in March 2008, Mr. Lewis loss amounted to $ 1.16bn.

Next was a member of the royal family of Qatar, Sheikh Mohammed bin Khalifa al-Thani game with a 280 million U.S. dollars to buy now is not the Icelandic bank KAUPTHING. The agreement gave him 5 / 01 percent to the bank the third-largest individual shareholder at the time. The failure, his status as head of equity left very little protection from massive loss.

The meaning of all this, of course, is that the super-rich long-term investors clearly see tremendous opportunities. However, markets are not always mutually millionaire, and those who are short-term gain may not be in a better position to win.

Taking into account similar to playing a future long-term investment strategy, such as Prince Al-Walid with Citi and buffet with Mr. Goldman.

Stephen Wall is a senior officer of wealth management strategies reflection Association Scorpion

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