Liquid assets
AN unexpected victim of the Princeton 'tiger is Edmond Safra, whose bank, Repub- lic New York, got too close to it and has been bitten. Republic pleads ignorance and disclaims responsibility, but letters to Mr Armstrong on Republic's headed paper were used to reassure investors that the Princeton notes were backed by assets and were earning good returns. Earlier this year Mr Safra agreed to sell Republic to HSBC for $10 billion. The deal has not yet gone through but the price of Republic's shares implies that, if HSBC still wants them, it could negotiate a 20 per cent discount on its first offer. Bankers gathering in Wash- ington for the International Monetary Fund's meeting are watching developments thirstily. Republic traditionally hosts the week's most lavish party and sets the National Gallery awash. Will it be six-packs and pretzels this year? Or will Republic go by the old maxim: when your stock's down, order champagne?
Previous page
