One wonders why …
According to the Hill newspaper: “U.S. lawmakers have been unusually silent about federal regulators’ decision to allow a Chinese bank to take over 13 bank branches in New York and California, suggesting that they think American banks have much to gain.
Members of both parties usually relish the chance to bash China on everything from government subsidies to the yuan’s exchange rate. Yet Wednesday’s decision by the Federal Reserve to certify a Chinese bank acquisition for the first time was met by near-universal silence.”
I doubt the Chinese will reciprocate and afford U.S. financial institutions a proportional market entry in the Chinese marketplace.
China is a global money laundering capital. By allowing Industrial & Commercial Bank of China unprecedented access the U.S. market, we have made it easier for the Chinese government to taint the global money supply.
On the flip side, the bank is now more legally exposed to U.S. law and regulations. This is a good thing if our political leaders find a political spine to do the right thing.
Calm before the political storm? I think so.
Read the entire article here.