Legislators Call For Sovereign Wealth Fund Clarity

Law360, New York (March 14, 2008, 12:00 AM EDT) -- Current laws surrounding foreign sovereign wealth fund investments in U.S. companies are too unclear about what criteria can trigger an investigation or review, three U.S. House representatives told Department of Treasury Secretary Henry Paulson on Thursday.

Reps. Barney Frank (D-Mass.), Carolyn Maloney (D-N.Y.) and Luis V. Gutierrez (D-Ill.) wrote a letter to Paulson urging him to clarify whether a 10% threshold is a “bright line” rule.

Currently, foreign companies who purchase less than 10% of a U.S. company are not subject to scrutiny by the Committee...
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