Back in November I did a blog entry looking at how Citigroup had given itself into Junk bond status with the Abu Dhabi Investment Authority's $7.5 billion bailout, giving it a near 5 per cent stake.

There is nothing wrong with a bail-out per se. But are there dangers when sovereign wealth funds buy into a market? We are not just talking here about foreign ownership, it's foreign government ownership that's the issue here. Can they use their investment to exert pressure on other governments? Like the US government.

It's a point taken up by Wharton finance professors Franklin Allen, Richard Marston and Richard J Herring in their Knowledge@Wharton discussion session.

As they see, it's going to be a growing issue. The sovereign wealth funds are estimated to control more than $2 trillion in assets, more than hedge funds. And a lot of is coming out of jurisdictions that are raking in money from rising oil prices.

The problem is that this puts an enormous amount of power into the hands of a small number of people. And governments are not the same as shareholders, they have different agendas. Particularly if they represent autocratic regimes.

On the other hand, these sorts of investments help stabilize markets. The Abu Dhabi Investment Authority's move on Citigroup is a case in point.

What's needed is more transparency. Getting the funds to release reports detailing their strategies and holdings would be a good start. But how that's worked out remains to be seen. Still, an answer is needed because this problem will not go away.