Newspaper article International Herald Tribune

Fed Clears Chinese Bank for U.S. Entry

Newspaper article International Herald Tribune

Fed Clears Chinese Bank for U.S. Entry

Article excerpt

The Industrial and Commercial Bank of China will buy an 80 percent stake in the Bank of East Asia, allowing it to operate in the United States.

The U.S. Federal Reserve opened the door for the world's biggest bank to establish a presence in the United States, allowing the Industrial and Commercial Bank of China to take a majority stake in an American institution.

I.C.B.C. and two other state-owned investors, the China Investment Corp. Central Huijin Investment, will together buy an 80 percent stake in the American arm of the Bank of East Asia. All three Chinese institutions will be granted bank holding status, giving them license to operate in the United States.

The decision, announced Wednesday, is a significant victory for I.C.B.C., which is majority-owned by the Chinese government.

(Its minority owners include Temasek, the Singaporean sovereign wealth fund, and Goldman Sachs.) It is the first big Chinese state- owned lender to buy a U.S. institution.

The American branch of the Bank of East Asia, a lender based in Hong Kong, was established in 2001. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.