Citigroup Buying Chinese Bank – Not
China’s banking regulators denied that Citigroup Inc. had beat out French Bank Societe Generale and China Insurer, Ping An Group to buy the Guangdong Development Bank.
It is rumored that Citigroup Inc. is prepared to throw $3 billion (2.2 billion Euro) the Chinese bank’s way to take ownership.
The chairman of the China Banking Regulatory Commission told a group of reporters at a banking conference that no deal has won approval.
He didn’t say there was no deal in the works.
American banks would love to get a foot hold in China, offer credit, drive the Chinese do deep in debt they can’t pay it all, and charge them ungodly interest rates until they do climb out…if ever.
Should an American bank be allowed to buy a Chinese bank? Is the American banking standard better than the Chinese one?
What do you think?
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