Fed clears China’s first US bank takeover

Here are portions of the story released by the AFP. When are we going to wake up and see that change is coming and it is coming quickly? We do not need to fear an invasion by the Chinese or Russians, but we do need to worry about being slaves to a financial system that will be controlled by the Chinese soon. Start paying off your debt now and make preparations so you will not be without food and water when the economy collapses. You do not want to be one of the ones that is fighting to stay alive while waiting on the U.S. government to step up and provide for you.

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.

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.

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 talks in Beijing, the US Treasury noted China had made “encouraging progress” on a number of issues, including taking steps toward a more open and market-oriented financial system.

“This unprecedented acquisition of a controlling stake in a US commercial bank by a mainland bank is strategically significant,” Xinhua quoted ICBC chairman Jiang Jianqing as saying.

The Fed said its Board also consulted with the China Banking Regulatory Commission, the country’s main banking regulator, and pointed to steady improvement in regulation since its founding in 2003.

“For a number of years, authorities in China have continued to enhance the standards of consolidated supervision to which banks in China are subject, including through additional or refined statutory authority, regulations, and guidance,” it said.

Emergency Essentials/BePrepared
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