One of the earliest topics on this blog was the Dubai Ports controversy (see here, here and here). Now another Dubai company's purchase of U.S. assets is in the news: "Nasdaq Stock Market Inc. struck a complex deal to sell a 20 percent stake to the state-owned Borse Dubai in return for control of Sweden's leading stock market ... ." It seems unlikely that this issue will become as prominent as the ports issue, because the security concerns are not the same. President Bush had this reaction:
Q: Mr. President, there's a deal taking place this morning where the government of Dubai would buy a share of — a stake in the NASDAQ stock market.
And there is some concern being expressed on Capitol Hill about this; it's another deal involving people overseas that we might not trust.
What's your reaction to it? And also, what's your level of concern about protectionism in general?
BUSH: My reaction is, is that we have a reform process in place that will be able to deal with this issue. In other words, we're going to take a good look at it, as to whether or not it has any national security implications involved in the transaction. And I'm comfortable with the process to go forward.
Nevertheless, key Congressional Democrats are raising questions:
Senator Charles Schumer of New York, who chairs the Joint Economic Committee, said today that he would ask the Treasury Department to review the deal, and indicated he could oppose it as he has opposed other foreign government efforts to take stakes in key US properties.
'This deal raises serious questions that must be answered,' Schumer said. 'Those questions will include -- should we allow foreign governments to take over our financial exchanges and how much control and influence should those foreign governments have?'
Senate Banking Committee Chairman Christopher Dodd of Connecticut also said the deal must be reviewed to ensure there are no national security implications, and said he would await a review by the Committee on Foreign Investment in the US (CFIUS) before judging the arrangement.
