Sovereign Wealth Funds: Love and Loathing in the Financial Markets

Do we increase our stake? It all depends on the performance and strategy."10 These capital injections, however, elicited a strong response from some US-based analysts who objected to American institutions going into the hands of foreigners. .....

The global financial crisis in early 2008 saw many SWFs investing in troubled financial institutions in the US and Europe. While these investments helped rescue the institutions from collapse, the SWFs were not universally welcomed. "The SWFs have tried to help - often on a very expedited basis - troubled western financial institutions and, unfortunately, they have been rewarded so far with losses as well as criticisms over their lack of transparency,"said David Rubenstein, Co-Founder of Carlyle Group11.12...