We’ve already noted (here) the political and economic backlash that could result from greater foreign involvement in American financial markets.  Now Joseph Treaster reports in the New York Times that the United Arab Emirates state of Dubai is preparing to purchase a 20-30% ownership share in NASDAQ (see the story here).  In this case, the sale of a portion of NASDAQ is tied into NASDAQ’s own efforts to expand overseas, in particular to gain a larger share of the London Stock Exchange.  So, they only want what we want — a share of world markets.  But the long-term implications of foreign government ownership of key U.S. financial instruments remain murky — just as the pressures to sell are rising.

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