The IMF is intensifying its analysis of the impact that Sovereign Wealth Funds (SWF) can have on the global good, outlining in a recent report what can be expected from its study. In a statement, the IMF said that it “expects its work on SWFs will provide a public good that may be used by existing and new SWFs to run sound organizations, with good governance structures, robust risk management frameworks, and appropriate transparency. These practices should also help allay some of the prevailing concerns about SWFs, reduce protectionist pressures, and allow the international financial system to remain open.” “In addition, the IMF's efforts would aim to promote a better understanding of the role and significance of SWFs in their countries' macroeconomic policy framework, as well as help the international community better assess the impact of SWF activity on global financial stability and capital flows.” SWF's have recently come under scrutiny for the role they have played in the attempt to shore up the liquidity problems facing American banks. The Abu Dhabi Investment Authority (ADIA) recently invested billions in Citi, America's largest bank by assets. Congress has largely stayed out of the role, some say after being pressured by corporate executives desperate for the cash infusion.
