Friday, January 25, 2008

Huge Pools of Foreign Cash Rescue U.S., European banks

What are some of the implications of foreign states buying big chunks of U.S. financial institutions? How will this affect the U.S. economy long term?

The move is creating a buzz at Davos, an international meeting of business leaders.
Now the people who run those funds that injected Huge pools of state-controlled cash have rescued American and European banks want some respect.

But by making investment by foreign governments seem routine, Washington may be ushering in a fundamental change to the U.S. economy without assessing the longer-term implications. Some economists warn that the stakes could provide autocratic governments an important say in how U.S. companies do business, or give them access to sensitive information or technology. The Wall Street Journal reports how lobbyists helped ink these deals:

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