ABA Journal - Law News Now

Law Firms

Overseas Oversight

Posted Aug 1, 2008, 08:00 am CDT
By Deborah L. Cohen

Sovereign wealth funds, state-run investment arms now flourishing in the Middle East, are bloated with reserves from oil wealth and industry. SWFs control an estimated $3 trillion in investments and are projected to be worth five times as much in 10 years, according to the Interna­tional Monetary Fund.

In burgeoning economies such as China, large state-backed companies have been scrambling to take advantage of the cheap U.S. dollar by attempting to acquire U.S. concerns such as energy corporations and in­vestment banks.

As those state-run funds keep purchasing stakes in Western businesses, officials in the United States and the European Union worry about the national security risks of buyers so closely tied to foreign governments—especially in the aftermath of the Sept.… Continue reading...

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