Sovereign wealth and market disruptions

There has long been a somewhat xenophobic fear of sovereign wealth funds. But they are here to stay and they will seek out opportunities to goose returns. Financial News Online notes that total assets in these funds could hit $10 trillion by 2012. In the recent market turmoil, some have noted that they can be stabilizing forces. Many think they prevented a big drop from turning into a bloodbath by stepping in. That raises some interesting scenarios not unlike the Citigroup situation. Executives at more firms will be answering to overseas Prince and quasi-government officials. Shareholder meetings could become very global events.  

For more:
- here's the Financial News Online article

Related article:
- Prince Alwaleed on Citigroup