Dealmaker Michael Grimes expected to lead new US sovereign wealth fund, sources say

Star technology investment banker Michael Grimes, who left Morgan Stanley to take up a senior role in the U.S. Commerce Department last month, is expected to lead the new U.S. sovereign wealth fund that was unveiled by President Donald Trump, two people familiar with the matter told Reuters.

Why it matters

The details, which have not been previously reported, highlight that plans for the sovereign wealth fund are beginning to take shape, despite questions about the feasibility of such an investment vehicle.

Middle Eastern and Asian countries have launched similar funds as a way to make direct investments with government dollars. Typically, such funds rely on a country’s budget surplus to make investments, but the United States operates at a deficit. Its creation would also likely require approval from Congress.