Fed clears China’s first US bank takeover..and so it begins


The United States on Wednesday opened its banking market to ICBC, China’s biggest bank, for the first time clearing a takeover of a US bank by a Chinese state-controlled company.

Just days after high-level US-China economic talks in Beijing, the Federal Reserve approved an application from Industrial and Commercial Bank of China to buy a majority stake in the US subsidiary of Bank of East Asia.

The transaction will make ICBC the first Chinese state-controlled bank to acquire retail bank branches in the United States.

ICBC has been the most aggressive of China’s “big four” banks in expanding overseas.

According to the Fed the bank has total assets of roughly $2.5 trillion.

It will buy up to 80 percent of the US unit of the Hong Kong-based Bank of East Asia, which operates 13 branches in New York and California.

As part of the deal ICBC and two state-backed financial firms — China’s sovereign wealth fund the China Investment Corporation (CIC), and Central Huijin Investment — will be recognized as bank holding companies, regulated as commercial US banks.

The broad expansion of China’s footprint in the US market comes amid a series of financial reforms in China that could begin to open the lucrative market to US firms.

After the May 3-4 meeting, the US Treasury noted China had made “encouraging progress” on a number of issues sought by the Obama administration, including taking steps toward a more open and market-oriented financial system.

The Fed said Wednesday that the ICBC proposed acquisition, which is “relatively small,” would not have much of an impact on the banking market.


better get used to it..this is the new world..china will buy it all up at bargain prices..and its not confined to america..they are buying everywhere..


~ by seeker401 on May 13, 2012.

9 Responses to “Fed clears China’s first US bank takeover..and so it begins”

  1. I’ve long believe the Anglo-American powers out there want to seize control of the Chinese banking system (i.e. allow hot money to go in and out of China). I’m sure this is being done in exchange for something that allows the Fed/Anglo-American bankers to get their foot in the door of the Chinese banking/currency system.

  2. great point Egg food for though and never seem how it is with ‘they’
    here again the usual suspectsS loans toChina in the past
    WE know why ‘they’ loan always is the same thing nothing change

  3. as i’ve said before, i think of china as being already owned by the elite. they’ve been priming it for centuries to become the perfectly unopposed authoritarian factory that it is. why risk their banking sector in vulnerable places like london and new york where people get uppity and are likely to get even more uppity.

    so, transfer the technology (r-ing a bell?), transfer the manufacturing center (see: europe -> usa 1860-1945), transfer the energy center (chinese state/private oil company is the largest in the world), and finally transfer the banking center. and before you do that, destroy the intellectual class (cultural revolution), use various mass murder techniques to soften the people (famines, purges, death marches, wars), and install a monocultural viewpoint (han supremacy, maoism, state capitalism) to make direct authoritarianism easier. refrain from post-mao personality cults, defer to party rule (the easier for maurice strong to whisper in your ear, my dear).

    only two things missing as far as i can see: the transfer of military might, and a huge obelisk being, ahem, erected in beijing or hong kong.

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