Chinese banking officials were considering buying up stakes in American banks during the height of the 2008 financial crisis, according to McClatchy Newspapers, citing documents obtained from WikiLeaks. The Chinese banks discussed investing in American financial corporations, but ultimately they decided not to do it, fearing a public relations firestorm and the scrutiny of U.S. banking regulators.
The report says: "In 2008, Chinese banks were in position to provide capital to struggling U.S. banks and were interested in working more closely with their American counterparts, said David Bachman, a professor in the Jackson School of International Studies at the University of Washington. But taking a significant stake would have triggered regulatory scrutiny and questions about whether Chinese banks were taking advantage of 'fire sale' prices, he said. 'Eventually, they came to the conclusion that it was too much effort or too much bother,' Bachman said. Investments by Chinese banks in their U.S. counterparts have raised concerns among policymakers because many of these financial institutions are controlled by the Chinese government, said Virginia-based banking consultant Bert Ely. The concerns were similar to when the U.S. Treasury invested in banks as part of the Troubled Asset Relief Program, he said.
Still, the Chinese remain active in US financial markets with reports that they are picking up assets being offloaded by the stricken Bank of America.
We can expect to see more of this. After all, Chinese banks have been buying retail bank branches in the US since January. With the US economy what it is, they would be going at bargain basement prices.
no comment untill now