When it comes to subprime and rabidly high oil prices, it seems there is a price to pay for defaults and missed payments, even for wealthy Saudi Arabians.
Saudi Arabia’s central bank ordered the country’s banks to freeze the accounts of Maan al-Sanea, the Saudi billionaire who owns a stake in HSBC Holdings Plc, people familiar with the instructions said.
Al-Sanea, who is chairman of the Khobar-based Saad Group, also manages The International Banking Corp. B.S.C., the Bahrain-based unit of Ahmad Hamad Algosaibi & Brothers Co. that has defaulted on some of its debt, according to an Algosaibi official who spoke on condition of anonymity. Saad Group said al-Sanea does not manage the unit.
The Saudi Arabian Monetary Agency sent circulars to the legal departments of Saudi-based banks on May 28 and May 30 telling the lenders to freeze the accounts, including credit cards, of al-Sanea, 54, his wife and four family members, according to one person who read the documents. SAMA didn’t say why it took the action, according to the person, who declined to be identified because the information is confidential.
Al-Sanea who is married to Sana Algosaibi, of the Algosaibi family, has a net worth of $7 billion, ranking him as the world’s 62nd richest person, Forbes magazine reported March 11. As many HSBC employees frequently say, “Just pay your bills and you would not have this problem.”
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