Huge losses spark dramatic shift in international finance

摘要

The beginning of 2008 may be remembered as the time that the dynamics of international finance shifted dramatically as the sovereign wealth funds of a handful of developing economies rode to the rescue of some of the developed world's largest financial institutions. On January 15, two US giants, Citigroup and Merrill Lynch, battered by huge losses from the subprime crisis, were provided with massive capital injections in excess of $21bn and, as losses at other giants are announced, the increasing role of the sovereign funds is emerging.