Expect more sovereign wealth to flow into financial firms

UBS was merely the latest in a line of banks that have accepted cash infusions from sovereign wealth funds, from the Middle East and Asia. In Business Week Online, S&P notes the pattern. China Development Bank bought a 3.1 percent stake in Barclays. The Dubai International Financial Centre bought a stake in Germany's Deutsche Bank. Citigroup, most famously, inked a deal with the Abu Dhabi Investment Authority (ADIA) that will infuse $7.5 billion worth of capital. This is being driven by the need to boost capital ratios. Citigroup apparently is still below its Tier 1 target level of 7.5 percent. The gist of this is that there's lot of money abroad seeking a foothold in top financial services companies. Prince Walid certainly has benefited from his Citigroup ties.  

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