Writing on his blog hosted at the Council on Foreign Relations, Brad Setser has some interesting things to say about the investments of sovereign wealth funds (SWFs) in US financial institutions, namely Citigroup. After pondering the foreign policy implications of various quasi-nationalization scenarios – and thus diluting or wiping out the stakes of SWFs – Setser writes:
“I was never fully convinced highly visible sovereign stakes could be wiped out even if there was an economic case to do so, precisely because of the foreign policy spillovers, which is one of the reasons why I was never convinced sovereign funds should be thought of as just another private players in market. But this crisis keeps spinning in ways that put a lot of different presumptions to the test.”
Good stuff.
No comments:
Post a Comment