By
way of introduction, I spent most of the last seventeen years working as an
investment banker and private equity investor based primarily in London, England.
This experience, I believe, gives me a somewhat different perspective on Sovereign
Wealth Funds and the role that they play in today’s international capital
markets. Currently, I co-direct the Global Strategic Finance Initiative at the New America Foundation. The New
America Foundation is a non-profit, post-partisan public
policy institute in Washington
D.C.
Over
the past several months, few issues in international finance have generated as
much discussion and comment as have Sovereign Wealth Funds. I commend you and
your colleagues for the informed and balanced views that you have expressed and
the questions that you have posed on this important subject.
As a
general matter, I believe that both the U.S. and global economies are
strengthened through open markets. Overall, economic health is bolstered and fortified
by the free flow of investment capital and increased liquidity that open
markets provide. As significant providers of capital to these markets, Sovereign
Wealth Funds have thus far been a positive influence in U.S. and global
markets. Most recently, significant capital injections by Sovereign Wealth
Funds in several major financial institutions have been a stabilizing force,
potentially averting a significant market downturn at a time of high market uncertainty
and volatility…
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