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Selling Right Before A Mega-Crash – Goldman Sachs Always Get It Right

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 [...]

Chinese Financial System On Brink Of Collapse

Chinese Financial System on the Brink of Collapse

Nouriel Roubini said some time ago that 30% of Chinese bank loans will become non-performing, which will shake the foundation of the banking system in China. Well, it seems that he knew what he was saying, unfortunately. According to a report by PriceWaterhouseCoopers cited by ZeroHedge, matured and overdue loans reached 489 billion yuan ($77.6 billion) at the end of the second quarter [...]

Shocking report from China is a “must read” for gold and silver investors

From Liberty Blitzkrieg:

This is a very interesting story out of China that should serve as a canary in the coal mine for precious metals investors everywhere. Basically, it appears that banks and other companies that have lent money to China’s steel sector with warehoused steel used as collateral have discovered that the steel in many cases is not even there!

If I am reading this correctly, not only were these lenders [...]

Fear of a dollar collapse will make the Chinese the biggest buyers of gold this year

China is widely expected to overtake India as the world’s biggest consumer of gold this year with gold purchases rising by 10 per cent, according to the leading Chinese bank ICBC. Why?

The Chinese are moving out of the dollar and into gold. That is what a seemingly ill-educated gold trader in the Sharjah Gold Souk told us earlier this year.

King for a day

You don’t need to be a genius to [...]

How Much Further Can Financial Stocks Fall?

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

From GoldCore

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 [...]

Bank workers try piece together almost $8,000 worth of Chinese yuan after woman shreds them… but only manage one note after six hours

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 [...]

Chinese Silver Investment Going Parabolic

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 [...]

Credit Suisse Buries European Banks, Sees Deutsche Bank And 65 Other Bank Failing Latest Stress Test, €400 Billion Capital Shortfall

by ZH

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 [...]

Beijing intervenes to help stabilise banks

From FT:

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 [...]

WSJ: IMF getting a little more worried that China’s boom could turn to bust, forecasts torrid 9.5% GDP growth

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 [...]

Victor Shih: The expansion of China’s state sector is fueling corruption that threatens to undermine the country’s economic progress

Patrick Chovanec s a professor at Tsinghua University’s School of Economics and Management in Beijing, China

Read more: http://www.businessinsider.com/must-read-victor-shih-and-carl-walter-on-the-chinese-banking-system-2011-8#ixzz1VbJE4Lpd

Recommended reading – or in this case, viewing — for this week is a series of video interviews sponsored by G+ with Victor Shih, of Northwestern University, and Carl Walter, co-author of Red Capitalism, on China’s banking system. You can watch Part 1, Part 2, Part 3, and Part 4 by clicking on the appropriate links. The [...]

Should You Put Your Savings in a Chinese Bank Account?

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 [...]

Just in case you missed it: China Bank Moves to Buy U.S. Branches

From WSJ:

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 [...]

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