Regulators Questioned On Sovereign Investments

Law360, New York (April 24, 2008, 12:00 AM EDT) -- Federal regulators told the U.S. Congress Thursday that they welcomed sovereign wealth fund investment in the U.S. despite concerns about transparency and national security.

So far, sovereign wealth funds have tried to be passive and provide their money with no strings attached, Federal Reserve Board General Counsel Scott Alvarez told the U.S. Senate Committee on Banking, Housing and Urban Affairs.

He said that the recent wave of sovereign investments in Citigroup Inc., Merrill Lynch & Co. and other struggling financial institutions consisted of noncontrolling stakes below...
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