Biff!! Bang!! Kerplunk!! -..... These would be annotations if a comic book artist were to draw a strip on last week's events in the financial markets. The industry now looks like how the Roman Army is shown after an encounter with Asterix and Obelix in the
famous comic series! We had hardly got over our chills over 'Black Tuesday' - when we have a distraction over a lone trader's mis-adventures in Socgen. Perhaps, the 'perfect ending' to a week of 'thrills, chills and spills'.
While we cope up with the numb feeling around us, it is pertinent to look at who could be the likely saviours of the distressed banks. From what I in the horizon, the most likely candidates are going to be the ASFs - Arab Sovereign Funds.
Just who are these ASFs? The investment funds of oil rich states - Kuwait, Saudi Arabia, Qatar and UAE (Abu Dhabi investments Authority, Dubai International Holdings).
And why would these funds be more popular compared to China and Russia? Simple, these are apolitical funds with no baggage of history to be concerned about and are also quick to reach for the cheque books. The combined wealth of the Arab funds is at least
500 BN USD and may turn out to be the 'parachute' colour is black - as in oil!
So, take heart, the runaway oil prices paid earlier may turn out to be an insurance premium for the banking industry and return back as 'saviour capital'.
Now, what's the country that we are all missing in this picture? Norway - of course - with its huge oil funds and proximity to London, will be a welcome addition to the scene! A Scandidavian Knight is in order too.