REAL NEWS FROM THE BLAZE’: IS A CHINESE BANK INVASION UNDERWAY?
Posted on May 10, 2012 at 9:45pm by Christopher Santarelli Print »Email »
On Wednesday the Federal Reserve approved plans by three state-backed Chinese banks to expand in the U.S., including the first acquisition of a U.S. retail-banking network by a state-owned Chinese lender. The Wall Street Journal reports that the approval is a landmark step for U.S. banking regulators, and allows Chinese banks to finally be able to provide financing to Chinese companies operating overseas, and to do business with foreign investors looking for exposure to the Chinese currency. The decision could though open the door to other Chinese takeovers of U.S. banks, although it is unlikely China will make significant inroads into the U.S. banking industry anytime soon. Gordon Chang of Forbes.com joined the panel to discuss the move and what it could mean long term for the U.S. financial system.
“Do we want Chinese state enterprises, essentially parts of the Chinese government, being integral parts of our economy.” Chang remarked. “I actually don’t think so.”
Watch a clip of the interview below: