The news that the Chinese government is taking over some American banks has been greeted in America with almost total silence. Technically it is a Chinese company that is taking the banks over but since the majority shareholder in the company is the Chinese government, perhaps we are splitting hairs.
From The Hill:
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.
Scott Talbott, the head lobbyist for the Financial Services Roundtable, said that's unsurprising. The U.S. wants China to open up its financial services market – foreign ownership of Chinese banks is limited to 25 percent – and allowing a Chinese presence in the U.S. is seen as a necessary trade-off.
“What this boils down to is that there are a ton more potential customers in China for U.S. banks than there are potential customers for the Chinese here,” Talbott said. “So in the long run, the approval is going to benefit the U.S.”
Wednesday's decision allows Industrial & Commercial Bank of China, which is 70 percent owned by the Chinese government, to take an 80 percent stake in a Hong Kong-based bank with 13 branches in the U.S. The Fed also allowed two other Chinese banks to open branches in New York and Chicago.
The decision came days after Treasury Secretary Tim Geithner met with top Chinese officials for annual talks in Beijing. China agreed during those talks to allow foreigners a greater stake in Chinese brokerage firms.
One of the very few lawmakers to speak out has been Sen. David Vitter (R-La.), who has a separate beef with the Fed over monetary policy and is holding up two nominees to its board of governors. And even he limited his response to a Tweet – two days after the announcement.
“In midst of my dispute w/ Fed,” Vitter wrote on Twitter, “news they're allowing China banks to takeover American financial institutes & enter banking market...bad news.”
Okay, let’s see if we have this straight. The Obama Regime is letting the Chinese government take over some banks here in America because we want the Chinese to open their markets to American financial services companies. So by opening the door to the Chinese, we hope they will do the same.
Has anyone ever told the idiots in the Obama Regime that hope is not a strategy?
The Chinese manipulate their currency so that they run huge trade surpluses with us. They have artificially lowered their prices so that Americans cannot compete with them, in many areas destroying the American manufacturing sector.
The Chinese to not believe in “fair trade.” The look on trade as a part of economic warfare and they do understand one simple concept. You fight a war to win it.
What is the advantage to America in allowing the Chinese government into our financial services markets? The answer is there is none. It is not in our best interest at all.
If the goal is to penetrate the Chinese market, then let the Chinese open their market first and then we can discuss reciprocity.
Until then, this is a very bad idea.
Allot of our States being "Run Over by the Feds" is due to the Stae Governors & Legislatures "Inaction" !
Taking Care of Their "Career" instead of serving the people of their State.
Governors from the 50 States need to "Go before the People" (National Television) and say....."Now there will be no riots in this state..because the first building set afire, or first citizen pulled out of a car and assaulted...Our State Police are instructed to Stop Felonious Assault and Injury of Innocent Bystanders " To Include Deadly Force" !
Assault with intent to Murder, assault with Intent to Rape, Arson of Offices & Buildings of Business & Private Homes.....Are Felonious Assault......Armed Robbery is a Felonious Event !
This is the "Leadership" we need in All 50 States (That are Sovereign States) !
This is "The Rule of Law" in the United States of America !
Would you please name the banks?
Sorry folks. But this is a free market which means freedom to whoever has the means to own. Thats what makes us different than the Chinese. If you have a problem with that than don't keep your money with them. Though my HSBC account yeilds a much better rate than any "American bank". If you have a problem with that than move to a communist country and shut up. I'm sure you'll appreciate the state run banks which are free from foreign investment.