Sovereign Wealth Saviours
The financial markets have found their superheroes. With major banks on their knees after subprime-related writedowns and bond-market liquidity much reduced, sovereign wealth funds may just drag the market back from the brink. But concerns remain over the funds' motivations. Laurence Neville reports
The credit crunch has brought a power shift in the global markets. Banks, desperate for new investment following a series of catastrophic writedowns, have turned to a new source of ready money: sovereign wealth funds. Just a year ago, these secretive investors were viewed with suspicion. Now they are being hailed as the saviours of the global economy after propping up some of the world's largest banks. With further big subprime-related writedowns popping up - and the risk of the occasion monster
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