"We’ll See Some Initial Panic": World Reacts To Billionaire Alwaleed's Stunning Purge

A shocked world is gradually responding to the stunning news of the Saudi "countercoup" purge that took place overnight - the second in six months -  and which led to the arrest of 11 princes, 38 current and former senior officials on corruption charges from a newly established anti-corruption committee headed by Crown Prince Mohammed bin Salman, and which most notably resulted in the detention of Prince Alwaleed bin Talal, the billionaire Clinton Foundation donor with significant stakes in Citigroup and Twitter, and who famously feuded with president Donald Trump, calling him a "disgrace not only to the GOP but to all America" back in December 2015.

Trump's angry response at the time was immediate (and prompted some to speculate that Crown Prince MBS sacrificed Alwaleed to appease the US president).

Predictably, initial focus has fallen on bin-Talal massive net worth, and specifically his investments. As Bloomberg calculates, the Saudi (ex?) prince is ranked the world’s 50th richest person with a net worth of about $19 billion; he is the founder of Kingdom Holding Co., a Riyadh-based investment company that has holdings in real estate, hotels and stocks such as Apple around the world.

A list of bin-Talal's assets compiled by Bloomberg shows that in addition to his equity holdings, the prince also owns $284 million in jewelry, $225 million worth of "plane and yacht", and $120 million in "furniture and fixtures."

Alwaleed has also long ranked among Citigroup’s largest and most outspoken shareholders, encouraging the lender to rebuild its Saudi Arabian business more than a decade after it lost a key banking license there. The bank will reopen in the kingdom later this year after a 13-year absence and lobbying by Alwaleed, according to Bloomberg.

Citigroup Chief Executive Officer Mike Corbat met the prince in Riyadh in March to discuss the bank’s future plans. Kingdom Holding has held the stock since 1991, according to its website, a span that included a 98 percent plunge during the 2008-2009 financial crisis. Citigroup shares have since climbed more than sevenfold.

Alwaleed's investment firm has also tended significant stakes in Apple and EBay Inc. for well over a decade.

While the website doesn’t specify the size of such holdings, Alwaleed’s investments are sometimes detailed in regulatory filings. At the end of last year, for example, he exercised voting rights for about 35 million shares of Twitter, most of which he owned directly, according to a February regulatory filing. As of Friday, a stake that size had a $695 million market value -- or almost 5 percent of the microblogging website’s total.

The kneejerk reaction to the news was adverse, with shares in Kingdom Holding, his biggest assets, plunged as much as 9.9% to levels not seen since December 2011, before closing down 7.6 %.

Quoted by Bloomberg, Joice Mathew, head of equity research at United Securities in Muscat, said that “There’s a good chance that stocks linked to Kingdom Holding, such as Twitter and Citigroup, will be hammered in trading tomorrow unless you see some sort of comment or statement from the companies or Alwaleed himself.”

“In the absence of news or details on what kind of corruption this is, we’ll see some initial panic, that’s for sure" he added.

Alwaleed also holds stakes in Beijing-based online retailed JD.com Inc., the Four Seasons hotel chain and Accor Hotels. Kingdom Holding is also backing a project to build the world’s tallest tower in Jeddah. 2017 had been a bad year for Alwaleed even before this weekend's arrest: his wealth has declined by more than $700 million so far this year, according to the Bloomberg Billionaires Index.

More bad news for the freshly arrested royalty emerged on Sunday, when Saudi officials said the bank accounts of those arrested in the crackdown will be frozen. For bin-Talal this means roughly a quarter billion in cash is no longer accessible.

Meanwhile, even as Alwaleed's investments got crushed following the news of his arrest - or are about to be once global markets open - algos and ETF managers took one look at the selloff in the broader Saudi index, the Tadawul All Share index, and did what they have been programmed to do so well in recent years: they bought the dip.

Comments

AlaricBalth BC6 Sun, 11/05/2017 - 11:08 Permalink

The Clinton's ties to Al-Waleed and the Saudi regime run deep.

"Saudi Arabia, for example, was a key Clinton benefactor. The oil-producing giant has had a relationship with the Clintons dating back to Bill Clinton's time as governor of Arkansas.

In 1992, while running for president, then-Gov. Clinton secured a $3.5 million Saudi donation for a Middle East studies program at the University of Arkansas.

A few weeks after Clinton was inaugurated president, the Saudis kicked in another $20 million. Both deals were brokered by a close Clinton friend, David Edwards.

Overall, the Clinton Foundation has received staggering sums from Saudi benefactors — between $18 million and $50 million. (The foundation's donations are reported in ranges, not specific numbers.)

While Hillary Clinton served as secretary of state, Bill Clinton gave two speeches in Saudi Arabia, earning a total of $600,000.

In January 2011, for example, Bill Clinton spoke at a global business forum in Riyadh founded by the Saudi Investment Authority and sponsored by the Dabbagh Group, a commercial colossus with close ties to the Saudi royal family."

In reply to by BC6

Manthong svayambhu108 Sun, 11/05/2017 - 11:18 Permalink

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0in;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:"Calibri","sans-serif";
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
 It’s just so reassuring to know that the markets are so stable and traders are not as impulsive as their algos.

In reply to by svayambhu108

Chupacabra-322 AlaricBalth Sun, 11/05/2017 - 12:04 Permalink

@ Alaric,

Spreading that Crypto Zionist Wahhabism & opening Madrasas across the Middle East & Central Asia costs money.

Arming, funding & training I CIA SIS terror organizations since the days of the Mujahaideen.

Sibel Edmonds has several pieces on the covert Intelligence Operations being conducted during the Clinton Administration to Turkey via NATO & C130’s to open Madrasas.

In reply to by AlaricBalth

Anteater Delving Eye Sun, 11/05/2017 - 13:34 Permalink

This is entirely due to money-laundering Saudi oil profitsthrough Trump hotels&casinos THAT HAVE ALREADY BEENCONVICTED of money laundering and quietly paid a fine.Your taxes pay for 1,000 SS agents (yes!) who guard Trump,His family, and his money-laundering  hotel clients.Mueller got Manaford, at the heart of it. Jar Jar fledfirst to Riyadh to warn Salman to clean up loose ends,then hiding out in Tel Aviv.'I knew it was you, Jared! You broke my heart!'

In reply to by Delving Eye

fearnot Sun, 11/05/2017 - 11:03 Permalink

Looks like Putin tipped of Salman King and Prince of upcoming coup attempt. Watch Saudi follow Turkey's footsteps quickly endorsing Russia can't wait to see CNBC and Fox News and all the rest of the Zionist propganda fake news networks and rags sink too. Wall St. Give Away Bill passed during the pre Christmas Holiday break of our Boehner House and Reid Senate of 2014: http://money.cnn.com/2014/12/12/investing/congress-wall-street/index.html Citi lobbied and paid to get this Omibus included with the Budget to insure its passing. Starting to look like Prince Bin Talal did not want to learn Rusian and Chinese. Maybe his English will help him explain who helped him finance a Saudi Coup Attempt.

Winston Churchill fearnot Sun, 11/05/2017 - 11:27 Permalink

Thats almost certain.Regime change was on the CIAs agenda after the kings visit to Moscow where he pledged fealty by bowing(literally) before Putin.That was not some slip up in ettiquette,US presidents almost genuflect to the Saudi Kings,neverthe other way around.That was far more than symbolic.Putin has further cemented the new relationship if he tipped the Saudis off.This is going to get interesting.

In reply to by fearnot

Chupacabra-322 Winston Churchill Sun, 11/05/2017 - 12:10 Permalink

@ Winston,

Let’s explore the Geopolitical ramifications a little deeper shall we?

The Imperial model of American diplomacy has collapsed and they are helpless in the face of Russian diplomacy that offers a fair deal.

Rather than reassess their model, the empire has decided on a policy of plunging into chaos any state that does not bend over.

Syria Libya and Iraq are victims of this model. If they seem to be rallying under the Russian banner because the Russians offer stability and their Chinese partners, prosperity.

What does the empire have to offer?

Threats, war, oppression, debt, and corrupt treasonous puppet leaders.
Who is going to win this race?

The only way America can save itself is to purge the deep state traitors who put the empire before the Republic. They will lose both and gain nothing.

If you want to move the price of oil by $10 increments - Russia is the natural ally - and proven to be a master of strategy/ equipment / technology/ tactics / commitment you can count on / and especially Diplomacy.

Each $10 PER Bbl- is $33 Billion per annum to SA. Not pocket change - when the largest "future" world supplier is ....Russia and can make it stick.
They also have Iran / Iraq / Turkey / Syria / Hezbollah as partners plus tangentially the Taliban / Pakistan.

And, a 10 million man military when the game goes full tilt and they want it -- China!

The Washington Cabal has no credibility with its "word" internationally nor with its Citizens - who hate them - republicans & Democrats alike
No one but fools see otherwise.

LV was inept- no videos of the garage / elevators / hallway / lobby of the PERP!!!!!

This event is representative of their credibility worldwide.

We are witnessing the CLOWN car go to a Clown bus and now to a Clown Train.

Trump is a minor figure in this 70 year process which never changed
Good luck to all American Citizens - you didn't deserve what's to happen.

In reply to by Winston Churchill

Winston Churchill Chupacabra-322 Sun, 11/05/2017 - 12:43 Permalink

I agree, but I believe Russia and China will offer the USA one last chance to reform itself in Pekingnext week.Whether DJT takes it is the question right now.If you know your history this is what happened when Roosevelt and Churchill met aboard HMS Prince of Wales.The situation really isn't that disimilar,we just have undeclared wars raging all over the world,the hegemon isbankrupt,overextended etc etc.Nobody wants a nuke WWIII breaking out, I think they will offer the USA a slowish decline out of empire.membershipof the OBOR, or massive economic warfare now,if all warmongering doesn't cease at once.How that can be achieved is the problem.The welfare warfare state and ziocons are not going to go quietly.Their Achilles heel is the paedophilia they are all dick deep into,someone cleverer than I has been orchestratingcastrating their power,theres evidence everywhere no matter how the MSM tries to bury it.It seems to be culminating now, and snowballing as it goes.Expect many more congresscritters to need more time withtheir families suddenly.Interesting times.

In reply to by Chupacabra-322

Dickguzinya Sun, 11/05/2017 - 11:04 Permalink

President Trump wins again.  Go get em Mr. President.  Cleaning house on as many continents as possible, especially one that has wrought terror on the United States, is a very important step in eradicating this scourge.  The fact that the clit-on and o-scumbag crime families played a big part in the destruction of the United States, only makes this news even more enjoyable.  Stay tuned for more house cleaning near and far.  MAGA!