US Treasury warns SWF rules could cause backlash

David McCormick, the US Treasury's undersecretary for foreign affairs, has said that rules forcing sovereign wealth funds to be more transparent could backfire.

Lawmakers on the Senate Banking Committee are looking into the impact of fund investment on economic and financial security. But McCormick warned imposing rules on funds could trigger hostility towards US firms with operations abroad.

"The US is the world's leading foreign investor. If the US imposed new restrictions, other countries