Abu Dhabi Investment Authority has hired the famous PR Firm - Burson Marsteller.
The PR and public affairs group, part of the WPP Group, is helping ADIA form a strategy to identify and then deal with the fund’s “stakeholders” – banks or the US Congress. James Lake, chairman of Burson-Marsteller’s US public affairs practice and a former official in the commerce departments of the former presidents Ronald Reagan and George W. H. Bush, is believed to be involved in the account.
Burson-Marsteller said: “It has traditionally been our policy not to discuss our clients. We will adhere to that policy in this instance.”
1/30/2008
Swiss are Pushing for Greater Transparency
Reuters reports that, “Switzerland will monitor sovereign wealth funds and work with other countries to set rules for such funds which have built up stakes in Western banks during the credit crisis." The article says from a Swiss government statement says that, “Internationally, the relevant federal authorities must cooperate actively in creating transparency standards and working practices for sovereign funds.”
1/29/2008
Citigroup CEO says Russian, Chinese SWFs are top worry
MarketWatch is reporting that, “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.”
1/29/2008
GICS turns down UBS Board Seat
Reuters reports that, “The Government of Singapore Investment Corp (GIC) turned down an offer of a seat on the board of UBS AG to assuage concerns the city-state might take control of the Swiss bank, local media reported on Monday, quoting GIC Deputy Chairman Tony Tan.”
1/28/2008
Lobbyists Help SWF deals
The Wall Street Journal writes that, “Lawmakers and the White House are welcoming the cash, and there is hardly a peep from the public. This is no accident. The warm reception reflects millions of dollars in shrewd lobbying by both overseas governments and their Wall Street targets – aided by Washington veterans from both parties, including big-time Republican fund-raiser and lobbyist Wayne Berman. Also easing the way: The investments have been carefully designed to avoid triggering close U.S. government oversight.”
The article also mentions that, “Under CFIUS rules, a passive stake – one in which investors don’t seek to influence a company’s behavior – is presumed not to pose national-security problems. Neither is a small voting stake, usually of less than 10%. During the recent string of deals, financial companies whose investments have met those requirements have notified CFIUS and haven’t had to go through 30-day initial reviews.”
1/28/2008
Times of India calls for creation of Indian sovereign wealth fund
The Times of India, in an editorial, writes that, “With US assets at historic lows, it is time India followed in the footsteps of countries like China, Saudi Arabia, United Arab Emirates and Singapore to pick up stakes in well-run companies. … Of India’s reserves of about $260 billion, there is no reason why, say, about $30 billion cannot be set aside to create an SWF.”
1/27/2008
China's Growing Appetite for US Stocks
As China's reserves continue to grow at an astonishing rate, there investment in US securities continues to grow as the US continues to have a large current account deficit. Experts from the Peterson Institute say that "the United States must import about $1 trillion of foreign capital every year" to finance the current account deficit.
1/27/2008
World Economic Forum Annual Meeting 2008
"Myths and Realities of Sovereign Wealth Funds"
Panelists
Richard Fuld, CEO of Lehman Brothers
Kristin Halvorsen, Minister of Finance - Government Fund of Norway
Muhammad Al-Jasser, Vice Governor Saudi Arabian Monetary Agency
Robert Kimmit, Deputy US Treasury Secretary
Aleksey Kudrin, Deputy Prime Minister & Finance Minister of Russia
Bader Al -Sa’ad, Managing Director of the Kuwaiti Investment Authority
Stephen Schwarzman, CEO of Blackstone
Larry Summers, Former US Treasury Secretary
1/27/2008
"There are 25 funds in the world and most are not transparent"
IR magazine writes that, “The sudden interest [in sovereign wealth] has taken some by surprise. Simon Tse, an analyst in Thomson Financial’s corporate advisory services group, notes that Prince Alwaleed bin Talal bin Abdul Aziz al Saud has been Citigroup’s largest investor for 15 years: ‘No one batted an eye.’ There are reasons for concern. ‘The main point is lack of transparency and corporate governance’ Tse says. ‘But politicians in an election year are expressing their concern in a bullish way.’ More disclosure would blunt opposition. ‘There are 25 funds in the world and most are not transparent,’ he says. ‘Everyone is looking to [the funds] of Singapore and Norway [which offer periodic reports] as the models.’”
MarketWatch is reporting that, “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.”
Reuters reports that, “The Government of Singapore Investment Corp (GIC) turned down an offer of a seat on the board of UBS AG to assuage concerns the city-state might take control of the Swiss bank, local media reported on Monday, quoting GIC Deputy Chairman Tony Tan.”
