SWF Radar BarackObama

Rachel Ziemba and others at RGE Monitor write that, “Part of the [Obama administration’s] plan also includes greater scrutiny of investments by Sovereign Wealth Funds. Even as the global recession is increasing risk of slowdown in global trade and possible rise in protectionism, this might be exacerbated by a Democratic Congress that favors conditional trade agreements. The current financial crisis and rising significance of Sovereign Wealth Funds might also increase Congress’ aversion to financial globalization and inward foreign investment. But aversion to trade might be overrated as they realize the risk of unilaterally withdrawing from global trade.”

TheHill.com reports that, “Lobbyists for foreign-owned companies are bristling over a new bill introduced by Sen. Charles Schumer (D-N.Y.) that will require them to register as foreign agents.”

The article reports Nancy McLernon, senior vice president of the Organization for International Investment (OFII), which represents US subsidiaries of companies headquartered outside the country, as saying that the bill could see foreign investors backing away from the United States.

The bill, which will oblige lobbyists for the US subsidiaries of foreign corporations to register under the Foreign Agents Registration Act (FARA) rather than under the Lobbying Disclosure Act (LDA), is co-sponsored by Sen. Barack Obama.

Reuters reports that, “Democratic U.S. presidential hopeful Barack Obama expressed concern on Thursday about the influence in the United States of funds controlled by foreign governments and said reforming U.S. energy policy was one way to curb their rise.”