Goldman Is Selling The Last Of Its Stake In A Chinese Bank, And Communist Officials Are Probably Pretty Annoyed
Goldman Sachs bought a stake in the Industrial and Commercial Bank of China before it was cool — before it had the 2nd largest IPO in the history of the world in 2006, and before it was the largest bank in the world by market cap.
Initially, Goldman owned 4.9% of the bank, whose stock is [...]
Chinese bank calls $1.6 trillion local government debt a timebomb
Bridge to nowhere?
The Agricultural Bank of China has sounded the alarm about “impulsive” local governments over-investing in the name of urbanization.
China’s official government news agency Xinhua on Saturday reported that local government debt – estimated at 10 trillion yuan or roughly $1.6 trillion – “has long been considered a time bomb for [the] Chinese economy”.
The bank – one of the four [...]
It seems to us that the entire global financial system continues to walk the tight-rope of public-confidence in fictional reserve banking. Where it is European (or Chinese) bank runs or mega losses at US bank non-proprietary businesses, it appears the credit market has been becoming more and more fearsome of the endgame since last Summer’s US downgrade when S&P made the impossible possible. While not all of the US financials [...]
Risk Of Bank Runs And Forcible FX Conversion Of Savings Deepens
Gold’s London AM fix this morning was USD 1,573.75, EUR 1,254.48, and GBP 1,003.67 per ounce. Yesterday’s AM fix was USD 1,579.00, EUR 1,255.67, and GBP 1,006.63 per ounce.
Silver is trading at $28.36/oz, €22.71/oz and £18.16/oz. Platinum is trading at $1,440.75/oz, palladium at $603.60/oz and rhodium at $1,275/oz.
The New York Exchange was closed yesterday because of a national holiday. Gold has [...]
Workers at a Chinese bank spent six hours trying to splice threads of 50,000 yuan (about £4,900) together after a mentally ill woman shredded them.
The woman’s desperate husband brought the money into the Sichuan branch of the Bank of China to try and get help. It is believed she tore the money to shreds during a mental breakdown.
Twelve staff at the bank offered to help the man after he explained [...]
BY DAN COLLINS
When 1.3 Billion people start investing in something…you might want to pay attention.
Chinese investment in silver has exploded since last year, with the trading volume going exponential. The China Daily reported today that the trading volume of silver forwards on the Shanghai Gold Exchange (SGE), China’s only exchange for the precious metal, surged 751 percent year-on-year in 2010. Meanwhile, the volume in September of this year was more than six times that [...]
A day after Credit Suisse killed the Chinese bank sector saying that the equity of virtually the entire space may be worthless if NPLs double, as they expect they will to about 10%, the Swiss bank proceeds to kill European banks next. Based on the latest farce out of Europe in the form of the third stress test, which is supposed to restore some [...]
The Chinese government will boost its stakes in the country’s largest banks, as it attempts to shore up slumping financial stocks and to restore investor confidence.
Central Huijin, the domestic arm of China’s sovereign wealth fund, will purchase shares in Agricultural Bank of China, Bank of China, China Construction Bank and Industrial and Commercial Bank of China, the official Xinhua news agency announced on Monday. Xinhua [...]
By Bob Davis, WSJ
While the International Monetary Fund forecasts torrid 9.5% GDP growth this year in China, the IMF is clearly getting a little more worried that China’s boom could turn to bust.
In the IMF’s Global Financial Stability Report, released on Wednesday morning, economist André Meier assessed the risk of a banking crisis in China and is less than reassuring.
A huge expansion of credit in China since 2008 helped that [...]
Excuse me I gotta post this part:
Any American citizen can open an account with a minimum of $500. Technically, it is two accounts, one opened in dollars and the other then converted into RMB at the official exchange rate (and $1 currently gets you 6.56 units of Chinese currency). No matter. The point is this: If you’re in New York or LA (and you can only open this account at [...]
China’s biggest bank signed an agreement that would make it the first Beijing-controlled financial institution to acquire retail bank branches in the U.S., though regulators could still block the deal.
Under the deal, Industrial & Commercial Bank of China Ltd., by some measures the world’s largest bank, agreed to acquire a majority stake in Bank of East Asia Ltd.’s U.S. subsidiary. The price tag wasn’t disclosed. People familiar [...]