US settlement fails to boost ADCB



Abu Dhabi Commercial Bank shares fell after it said a settlement in the United States of its legal action over losses linked to its pre-crisis subprime investments would have a "limited" effect on its balance sheet.

The capital's second-biggest lender sued the ratings agencies Standard & Poor's and Moody's Investors Services and banks including Morgan Stanley and BNY Mellon in 2008 over a US$10 million investment in a so-called "structured investment vehicle" known as Cheyne Finance.

The five-year legal battle ended on Wednesday with an out-of-court settlement, the bank said in a statement. Terms of the deal were not disclosed.

"ADCB is satisfied with the outcome of the settlement," it said. "The original investment had already been fully provisioned and receipt of the settlement proceeds will have a positive but relatively limited effect on ADCB's balance sheet."

But the bank's shares fell 1.07 per cent to Dh4.61 each after the announcement of the settlement. ADCB's shares are up 55 per cent year-to-date.

The Abu Dhabi Securities Exchange General Index fell 0.2 per cent to 3,278.22.

Between 2004 and 2007, Cheyne Finance pooled capital from buyers including ADCB to invest in bonds backed by subprime mortgages.

The bank said that the product would have been "virtually unmarketable" without the highest credit ratings given to it by Moody's and S&P.

The bursting of the subprime mortgage bubble inflicted severe damage on the US financial system, ultimately leading to the collapse of the investment bank Lehman Brothers in 2008 when interbank liquidity abruptly froze.

Mashreqbank this month sued ING Group, the biggest financial services firm in the Netherlands, over $43m in losses that were funnelled into subprime investments that the Dubai-based bank dubbed "illiquid roach motels".

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
if you go

The flights

Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.

The hotel

Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.

The tour

Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg

THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

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German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)