The purpose of this article is to analyze the current role of sovereign
wealth funds in a corporate governance scheme. Sovereign wealth funds, which have become increasingly important
institutional investors in the United States, have found their activities in
equities markets in the United States increasingly constrained due to stringent
regulations. While these sovereign wealth funds raise important policy
considerations for lawmakers, these regulations hinder sovereign wealth funds
in their role as investors. Despite the power the sovereign wealth funds
could hold in American companies, these funds have effectively become “tamed
tigers.” Despite their enormous power,
they simply cannot exercise it. Thus, this
article will examine whether having sovereign wealth funds in a “tamed tiger”
capacity should continue or whether regulations should encourage more activity
from sovereign wealth funds.
II. Sovereign Wealth Funds
The best definition of what sovereign wealth funds are and what they do
comes from … Read the rest
Fidel Castro recently stepped down as president of Cuba. Castro's health, not the 46 year trade embargo, was the primary reason for Castro's statement that he "would not seek to retain his post."  Anyone seeking a radical change in the policies of Cuba may have to wait indefinitely, as Fidel Castro's younger brother Raul quickly supplanted him. In a ceremony, on February 24th, Fidel's younger brother was formally designated as Fidel's successor as the head of Cuba's Council of state.  Furthermore, Raul stressed that although Fidel will step down as president, Fidel will continue to be "consulted on important decisions, especially on those relating to defense, foreign policy and the economy."  However, American politicians and the public have yet another opportunity to consider the continuing effects of the trade embargo placed upon Cuba nearly 50 years ago. Clearly, Fidel was able to defy the wishes … Read the rest
Nationalization keeps multinational corporations and investors up at night. Simply put, nationalization is an exercise of sovereignty where a country seizes private property, resources, or other investments on its soil. The country usually decides whether to pay compensation to former owners after seizure. The recent nationalization of oil projects by Venezuela begs the question: what recourse do corporations like Exxon-Mobil ("Exxon") have if their investments are nationalized?
The dispute between Exxon and Venezuela began with six firms – Exxon, Chevron, Statoil, Conoco Phillips, Total and BP – investing along with Venezuela in an oil project in the Orinoco river basin.  The deal took place under a period called the "Petroleum Opening," when the 1990’s-era Venezuelan government attempted to maximize the benefits of transnational corporate investment in PDVSA while minimizing public responsibility.  After the Chavez government took power, the Venezuelan legislature raised tax rates for … Read the rest
With so much possibility, South Korea’s legal market is virtually untapped, especially considering that it is today’s 10th largest economy in the world.  This is because South Korean law prohibits foreign lawyers from becoming licensed to practice within the country and also prohibits foreign law firms from establishing branches within South Korea.  South Korean lawyers not only have a very different legal education system, but also have an interesting monopoly within the legal market of Korea. This long insulated legal system is about to change. There has been recent proposed legislation to open the Korean legal market through the Foreign Legal Consultants Act.  This will most likely have world-wide affect and forever change how the legal system in Korea operates.
II. Foreign Legal Consultants
While foreign lawyers are not allowed to become licensed, they are allowed to be pseudo employed. To be employed within Korea,
… Read the rest