Treasury- No comment on Temasek,investment welcome

WASHINGTON, July 29 (Reuters) - A senior U.S. Treasury official declined to comment on Tuesday on Singapore state-run Temasek Holdings’ [TEM.UL] likely expansion of its stake in U.S. investment bank Merrill Lynch & Co (MER.N: Quote, Profile, Research, Stock Buzz) but said the United States welcomed foreign investment.

“As a general perspective, investment in the United States has been a great driver of innovation and is something that we welcome. It is a great validation,” David McCormick, U.S. Undersecretary of the Treasury for International Affairs, told reporters after delivering a speech.

Merrill said on Monday it would raise $8.5 billion of fresh capital by selling new stock, including a $3.4 billion purchase by Temasek. (Reporting by Alister Bull; Editing by James Dalgleish)