Okay, so now it seems sovereign wealth funds aren’t really as much of a concerns as Hank Paulson originally thought. Oil prices skyrocket, the Arab region grows rich (richer?) and potential political and economic concerns go out the window. Actually, he’s been quietly working with the region for the past few months, so the announcement from the United Arab Emirates isn’t all that surprising. Sovereign funds are a huge source of capital (actually one of the largest sources of capital to be found) and Paulson wants in. To be fair, he expressed his concerns last year, before the full extent of the credit crisis was known. But desperate times call for desperate measures.
“We are open for business,” Mr. Paulson told the Wall Street Journal. “I don’t anticipate any [political] problems with investments from sovereign-wealth funds this year.”