State investment funds from China and Russia are the main concern in the growing debate over whether to regulate so-called sovereign wealth funds, the chairman of Citigroup Inc.
Win Bischoff, said Tuesday.
"It is the China and Russia syndrome of sovereign wealth funds that is most concerning," Bischoff told a finance conference in Brussels.
Citigroup and Merrill Lynch were among the financial institutions that raised funds from Middle Eastern sovereign wealth funds following recent write-downs related to bad subprime mortgages.
Bischoff noted that when Citigroup raised this money, it was seen as a strengthening of the financial system. He said, however, that since then the U.S. has become more wary of state-controlled investments.
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