Foreign nations snap up U.S., Europe bank shares

[babylonsister]

Foreign nations snap up U.S., Europe bank shares
Rising oil prices are just one force empowering 'sovereign wealth funds' to enter Western markets.

By Mark Trumbull | Staff writer of The Christian Science Monitor
from the December 21, 2007 edition


Page 1 of 2


The rise of controversial cash funds controlled by foreign governments has suddenly hit home in a very prominent place: Wall Street.

Nations such as China, Singapore, and the United Arab Emirates are effectively taking multibillion-dollar roles as part-owners of Citigroup, UBS, and this week, Morgan Stanley as well.

To these firms, the moves represent a welcome infusion of cash.

But the moves also call attention to concerns in the US and Europe about how to respond to the rising clout of the so-called "sovereign wealth funds" run by developing nations.

These funds have surged in value, and in ambition, thanks to the rising price of oil and rising exports of goods to the US.

For policymakers, a key worry centers more around the realm of research labs than of banking. Funds run by other governments might operate in a different fashion – perhaps with military interests in mind – than private-sector companies.

Yet some economists also see a risk that overreacting to such concerns could backfire at a time when America needs to have its doors open to foreign investment.

In fact, the larger concern with sovereign funds may be that their rapid growth symbolizes an imbalanced world economy. America has been shipping its dollars overseas to buy foreign goods, and now foreign nations increasingly want to invest them in something with higher returns than Treasury bills.

"It is a direct product of our grossly imbalanced trade relationship," says Scott Paul, who heads the Alliance for American Manufacturing in Washington.

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http://www.csmonitor.com/2007/1221/p03s05-usfp.html

[no_hypocrisy]

1. A fiduciary White Elephant Sale brought to us by republicans who have to

accept the less than beneficial outcomes of free market principles without restriction. While the shareholders come out with a nice chunk of change, it is at the expense of the national and international economies as the organic nature of these banking corporations change with different priorities of its new owners.

[Double T]

2. "It is a direct product of our grossly imbalanced trade relationship,"

Thank you wall street and corporate ANTI-america for the traitorous ruination of our country.