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Economic Research

Who is Going to Rescue the Hundreds of Busted U.S. Banks? Don’t Count on Suckering Again the Foreign Governments (the Sovereign Wealth Funds). And the Biggest Fire Sale in the History of Humanity…

Time International (the global version of Time magazine) has recently published an article that Rachel Ziemba and myself have written on sovereign wealth funds (SWFs) and their past and potentially future role in rescuing financial distressed U.S. and foreign banks and other financial institutions.

Here is the text of this articles followed by some additional remarks and observations on why the ability/willingness of SWFs (and the political constraints in the U.S. around their actions) to do another round of recapitalization of U.S. financial institutions – after the losses they bore[...]

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