Fed clears China’s first US bank takeover
The United States opened its banking market to China’s biggest bank ICBC, 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 abroad.
Outside China, it operates subsidiary banks in Asian countries and has branches in a number of countries including Germany, Japan and Singapore.
According to the Fed, the bank has total assets of roughly $2.5 trillion.
ICBC 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. Read More
Posted on May 9, 2012, in #business news, #top news and tagged bank of east asia, business, economy, Hong Kong- based bank, ICBC china bank, middle-east, United States Banking. Bookmark the permalink. Leave a comment.