Chinese Banks Get Fed’s Blessing To Broaden Reach, Acquire U.S. Banks

The Federal Reserve’s governors voted unanimously to expand China’s banking access on U.S. territory, including for the first time allowing Chinese buyouts of U.S. banks, according to an approval announced May 9.

That will allow some Chinese state-owned financial firms and investment vehicles a bigger U.S. footprint than they have ever had. The precedent-setting approval permits the Industrial and Commercial Bank of China Ltd., China Investment Corp., and Central Huijin Investment Ltd. to become bank holding companies by acquiring up to 80 percent of the voting shares of The Bank of East Asia (U.S.A.) National Association in New York, because ...