The US Federal Reserve said Monday it had authorized China Construction Bank, a leading Chinese state bank, to operate in the United States.
The proposed New York City branch of CCB "would engage in wholesale deposit-taking, lending, trade finance, and other banking services," the Fed said in a statement.
The US central bank recalled that China Construction Bank Corporation (CCB) is 57.0 percent owned by the Chinese state, 19.7 percent by US banking group Bank of America and 5.7 percent by Temasek Holdings, a sovereign wealth fund owned by the government of Singapore. The remainder of the capital is publicly traded.
CCB is the second-largest bank in China, with total assets of approximately 1.1 trillion dollars, it noted.
The Fed said it had determined that CCB had adequate anti-money laundering safeguards and had committed to respect US laws on money laundering.
CCB's own funds exceed the minimum set by the 1998 Basel Capital Accord and "is considered equivalent to capital that would be required of a US banking organization," the US central bank said.
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1 comment:
We have borrowed close to one trillion dollars from China. It makes since that they will use it to buy the US and it worked. Next the Saudi's will play their ace card to buy up USA. Look Americans who hate minorities are now realizing their homes belong to Chinise investors. We learned from this recession that the Saudi's own a major share of Citi Group and who know's they to might use their ace as a take over.
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