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One of the issues in today’s market is the role of Sovereign Wealth Funds. Many of these funds are run by not-so-friendly countries and they’ve placed several sizeable investments in western firms.

The question many governments have is, how to deal with it. We don’t know exactly what these funds are or their objectives. Since this business is inherently international, the Financial Times opines in favor or global standards of conduct.

I think that’s a terrible idea. Unless there are anti-trust or national security concerns, the decision to sell any company should rest with the shareholders and the shareholders alone. If the great sultan of Petrostan wants to blow a few billion on some American bank that lost its shorts investing in subprime, that’s between the sultan and the shareholders.

I also think that owning parts of the west would be beneficial for these countries. It’s harder to kill off all the infidels when they’re the ones responsible for your quarterly dividend payments.

Posted by edelfenbein at February 19, 2008 10:29 AM