DAVOS, Switzerland AP – Sovereign wealth funds, with their deep pockets and government backing as they invest worldwide, offer little transparency and could flex their political power by taking key stakes in foreign defense companies, major banks and other companies, critics said at the World Economic Forum on Thursday.
“The question is if we believe in market economies and we work very hard to create open markets and private enterprise – shouldn’t we be concerned with transactions that have an element, albeit a small element, of cross border nationalization” asked Larry Summers, a former U.S. Treasury secretary.
