International: Sovereign Wealth Funds
Last Updated: August 14, 2008
Overview:
Sovereign wealth funds (SWFs)—large pools of capital controlled by a government and invested in private markets abroad—are growing rapidly in both number and size. The rapid growth is an area of increasing concern for policymakers in the United States as well as abroad.
Position:
SIFMA supports open investment policies and the free flow of capital.
Status:
The Joint Economic Committee held a hearing on sovereign wealth funds on February 13, 2008. The Senate Banking Committee held a hearing on sovereign wealth funds on November 14, 2007. The House Financial Services Committee and the Senate Banking Committee are expected to hold hearings on the issue in 2008.
Senate Banking Committee Chairman Chris Dodd (D-CT) and Ranking Member Richard Shelby (R-AL) sent a letter to members of the Senate to inform them of the Banking Committee’s ongoing oversight of sovereign wealth funds. Dodd and Shelby said as the Committee continues to monitor implementation of FINSA, they are also considering the effects of sovereign wealth fund investments on U.S. economic and financial security. As part of its examination, the Committee held a hearing last November, is reviewing a forthcoming Government Accountability Office study on SWFs and plans to hold future hearings to examine the implications for workers, businesses and investors.