Wealth Funds and US foreign policy
Heres a thought to ponder. Since a lot of foreign government funds (swfs) depend on the success of the economy/institution of the funded nation to perform well, would a wee bit of influence from the investors actually matter?I mean, the funds will thrive if the economy/company thrives. I can't help but wonder if all the talk about the US government's concern on cross-border investments are raised by everyone except Washington.
Policy dictates that foreign governments /institutions do not buy more than a 10% stake , lest they open up to investigations. US officials maintain that sovereign funds appeared to be adhering to sound financial practices and not political motivations, at least so far.
Public Policy think-tanks out of Harvard and elsewhere fear that heavy investments by state owned authorities might inadvertently lead to haggling over US industry regulation standards or even foreign policy.
Caution is a prescription.Regulators can definetly set control standards that would ensure funds originating out of the Middle east (or from any foreign governments) provide disclosure of investment practices and transparency in the fund strategy.
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