(NEW YORK) US financials face more 'chaos' as the credit market worsens, investor Jim Rogers predicted.
Not convinced: Mr Rogers is still betting against US investment banks, even after ending his short sale of Citigroup Inc a few weeks ago'Balance sheets of many of these financial institutions are still terribly impaired and there are more problems to come,' he said during a Bloomberg Television interview.
'We had the worst credit bubble in the history of the world. You don't clean that out in a year or two or three.'
The chairman of Singapore-based Rogers Holdings said that he's still betting against US investment banks, even after ending his short sale of Citigroup Inc a few weeks ago because the bank's stock fell too low.
Citigroup shares closed at US$14.56 on July 15, the lowest since 1997. The world's largest bank by assets has rallied 25 per cent since then.
Mr Rogers also called the government takeover of Fannie Mae and Freddie Mac 'outrageous' and said that the largest US mortgage finance companies should have declared bankruptcy.
'I'm happy some people will be able to get lower mortgages, but I shouldn't have to pay for it,' he said. Fannie Mae and Freddie Mac executives aren't 'turning in their Maseratis when they're asking us to bail them out'.
Both companies dropped to less than US$1 this week in New York Stock Exchange trading after regulators put them into a government-operated conservatorship, ousted their chief executive officers and scrapped dividends.
Mr Rogers, who correctly predicted the start of the commodities rally in 1999, said that he's still bullish on oil.
The fuel has fallen 31 per cent since its July 11 intraday record. -- Bloomberg
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