AFP Photo: Headquarters of the Industrial and Commercial Bank of China (ICBC), pictured in Beijing.
I won't pretend to be qualified to make intelligent comments on this subject, but I don't have a good feeling about this.
Rueters reports:
China to pay $140 Million for 80 Percent of U.S. Retail Bank
(Reuters) - Industrial and Commercial Bank of China (1398.HK), the world's top lender by market value, will pay about $140 million for 80 percent of Bank of East Asia's (0023.HK) U.S. unit, the two companies said on Sunday. Read more...And concludes with:
ICBC's buy would make it the first Chinese lender to buy into a U.S. retail bank and is likely to be scrutinized by U.S. regulators and could trigger political controversy.
YOU THINK?
More articles on this story:
Wall Street Journal reports:
China Bank Moves to Buy U.S. Branches
CHICAGO—China's biggest bank signed an agreement that would make it the first Beijing-controlled financial institution to acquire retail bank branches in the U.S., though regulators could still block the deal. Read more...
WSJ Deal Journal Blog reports:
Why China’s ICBC Bank Deal is Important (By Shira Ovide)
The Chinese (banks) are coming!!
As Deal Journal colleague Lingling Wei is reporting, Industrial & Commercial Bank of China is becoming the first state-owned Chinese bank to buy a U.S. retail bank. That means Americans could soon see a wave of Chinese financial institutions on U.S. shores (assuming regulators allow the deal to go through). Read more...
Wall Street Journal reports:
ICBC to Double Europe Presence (BY DINNY MCMAHON)
BEIJING—Industrial & Commercial Bank of China Ltd. plans to open five branches in Europe over the next two weeks, more than doubling the European presence of China's biggest lender in its latest move to establish a global footprint.
ICBC will open branches in Paris, Brussels, Amsterdam and Milan this week, and Madrid the week after, a spokesman for the bank said in response to questions from The Wall Street Journal.
The bank already has a presence in London, Moscow, Luxembourg and Frankfurt. The spokesman said the new branches will offer retail and commercial-banking services.
Wall Street Journal reports:
(BY ROSE YU AND CHESTER YUNG)
HONG KONG—Industrial & Commercial Bank of China Ltd., the nation's largest lender by assets, said Thursday it will raise as much as 45 billion yuan (US$6.8 billion) from a rights issue in Shanghai and Hong Kong to shore up its capital base.
The rights issue will bring to an end a yearlong fundraising effort by China's biggest banks to meet tougher capital requirements and prepare for possible further monetary tightening following a massive expansion of credit to support Beijing's economic stimulus.
IF, I said IF, American companies are allowed to do the same in China, then how can we morally stop them from doing likewise here. As for what goes on in that part of the world, it would seem that American banks should be able to sell foreign branches. It really should be outside of the U.S. Government's jurisdiction anyway.
ReplyDeleteGorges:
ReplyDeleteLike I said, I don't pretend to have an understanding of this situation. It just seems like China has the upper hand...everywhere.
Well, we shop at Wally World. This, I'm afraid, was just a matter of time. The Japanese did it back in the 1970s, so now it's China. They will receive the existing loads and deposits, but I think anything new will allude them.
ReplyDeleteHi Lady, I thought I would come here as the other me and thank you for the blog roll add. I have done the same on my sidebar.
ReplyDeleteEnough people will not like this and will not do business with China banks.
Woodsterman/Odie
Odie:
ReplyDeleteI hope you're right. It just looks like they are setting themselves up to become the world's banker and, as a result, get more control.
D'nL (aka Odie):
ReplyDeleteI know we won't be heading out to one of their bank branches if this thing goes through. Although, it's hard to get away from purchasing merchandise they produce. So, I guess in a way, we're already banking with them.