{"id":15806,"date":"2015-12-30T09:11:47","date_gmt":"2015-12-30T14:11:47","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15806"},"modified":"2015-12-30T09:18:25","modified_gmt":"2015-12-30T14:18:25","slug":"what-secret-do-global-banks-know-about-chinese-banks","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15806","title":{"rendered":"What Secret Do Global Banks Know about Chinese Banks?"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/12\/29\/what-do-global-banks-know-about-chinese-banks\/\" target=\"_blank\">What Secret Do Global Banks Know about Chinese Banks?<\/a><\/h3>\n<p class=\"entry-meta\"><strong>They\u2019re dumping their stakes.<\/strong><\/p>\n<\/header>\n<div class=\"entry-content\">\n<p>\u201cNow is the right time for us to sell this investment,\u201d\u00a0<a href=\"https:\/\/www.db.com\/ir\/en\/content\/ir_releases_2015_5100.htm\"><u>announced<\/u><\/a>\u00a0Deutsche Bank\u2019s newish co-CEO John Cryan on Monday after the long Christmas weekend when no one was supposed to pay attention.<\/p>\n<p>It was how Cryan justified the deal to sell Deutsche\u2019s entire 19.99% stake in Hua Xia Bank in China to Chinese insurer PICC Property and Casualty. He couched the deal in terms of executing Deutsche\u2019s \u201cstrategic agenda\u201d: boosting capital ratios to prop up the balance sheet.<\/p>\n<p>Deutsche isn\u2019t the first Western bank to bail out of banks in China where regulators limit foreign ownership stakes to a maximum of 20%, which brings some complications.<\/p>\n<p>Goldman Sachs sold its stake in Industrial and Commercial Bank of China in 2013. Bank of America Merrill Lynch bailed out of its stake in China Construction Bank in a series of deals. BBVA, Spain\u2019s second largest bank, has been cutting its stake in China Citic Bank from about 15% in 2013 down to 4.7% now, and that remainder appears to be earmarked for sale as well. Other banks are also\u00a0likely to pick up their marbles and go, such as Standard Chartered, with its stake in Agricultural Bank of China.<\/p>\n<p>Like Deutsche, they couched those deals in terms of boosting capital ratios and balance sheets.<\/p>\n<p>And Deutsche could use some balance sheet repair. One of the largest and most leveraged global banks, it has been tangled up for years in a long list of scandals, court cases, and multi-billion-dollar settlements. Recently it suspended senior staff in Russia after suspecting they\u2019d assisted in laundering money for sanctioned buddies of President Vladimir Putin. We were all shocked.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What Secret Do Global Banks Know about Chinese Banks? They\u2019re dumping their stakes. \u201cNow is the right time for us to sell this investment,\u201d\u00a0announced\u00a0Deutsche Bank\u2019s newish co-CEO John Cryan on Monday after the long Christmas weekend when no one was supposed to pay attention. It was how Cryan justified the deal to sell Deutsche\u2019s entire [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[3038,130,11338,9302,11337,1839,9602,376,11336,4254,4255],"class_list":["post-15806","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-america","tag-china","tag-china-construction-bank","tag-chinese-banks","tag-commercial-bank-of-china","tag-deutsche-bank","tag-global-banks","tag-goldman-sachs","tag-hua-ixia-bank","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15806"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15806\/revisions"}],"predecessor-version":[{"id":15808,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15806\/revisions\/15808"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}