Number: RL34319 Title: Foreign Ownership of U.S. Financial Assets: Implications of a Withdrawal Authors: James K. Jackson, Foreign Affairs, Defense, and Trade Division Abstract: This report provides an overview of the role foreign investment plays in the U.S. economy and an assessment of possible actions a foreign investor or a group of foreign investors might choose to take to liquidate their investments in the United States. Concerns over the potential impact of disinvestment have grown as national governments have become more active investors and as uncertainty over the risks associated with securities backed by sub-prime mortgages has increased volatility in financial markets. Pages: 16 Date: July 14, 2008