Congressional concern has prompted a federal investigation into the increasing investment presence in the U.S. of foreign countries’ state-run sovereign wealth funds and their effect on corporate governance, transparency and adequate regulation of corporations.
The Government Accountability Office formally began working on a study examining sovereign wealth funds, the investment arm of foreign governments, and the size and type of investments these pools of capital are making in the U.S. The study was requested in September by Alabama’s Richard Shelby, the ranking Republican on the Senate Banking Committee. Sen. Christopher Dodd, D-Conn., the committee’s chairman, supported the request and said he is eager to see the results.
