Article 43

 

Tuesday, October 23, 2007

Bad Moon Rising Part 20 - China Stalks Wall Street

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Like the uncoiling of the untapped KUNDALINI energy in the aspiring adept - watching China’s rise to become the dominant economic power of the planet is a powerful shifting of energy, and great awakening for us all.

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China stalks Bear Stearns

NY Daily News
October 22, 2007

The Chinese government is eyeing a stake in beleaguered brokerage Bear Stearns, a powerful indication of China’s goal of buying into Wall Street.

China Citic Bank’s interest in owning a piece of Bear Stearns, America’s fifth-biggest brokerage firm, became public when a top Chinese banking official mentioned it during a meeting at a Communist Party summit in Beijing.

“We are seeing an acceleration of Chinese financial institutions expanding abroad, such as Citic Bank bidding for Bear Stearns,” said Jiang Dingzhi, vice chairman of China’s banking agency. He did not elaborate.

His comments were the first Chinese confirmation of a potential offer for a stake in Bear Stearns, which has been hit hard by credit market turmoil.

Speculation about a Chinese investment in Bear first surfaced in April 2006 after it was reported that another government-controlled institution, China Construction Bank, was seeking to buy as much as 12% of the brokerage giant.

The deal could help Bear Stearns build Chinese operations, Standard & Poor’s investment banking analyst Matthew Albrecht said.

Other potential suitors, such as investors Warren Buffett or Joseph Lewis, who owns a 7% stake, may not be able to match the strategic benefits the Chinese bank can offer.

Bear Stearns is coming off a rocky summer in which two hedge funds it managed went bankrupt and lost billions of dollars on bad bets in the subprime mortgage industry.

Bear Stearns’ profits were among those hardest hit by rising delinquencies and defaults among subprime mortgages - loans given to customers with poor credit history - and the declining value of securities backed by the risky loans. Shares of Bear Stearns have plummeted 21% since early June. But yesterday, in a down market, they advanced 2% to $123.05.

Citic’s potential bid comes as Chinese companies step up investments abroad. An agency created by Beijing to invest $200 billion from China’s foreign exchange reserves paid $3 billion this year for a stake of less than 10% in U.S. investment fund Blackstone.Eyes stake in No. 5 brokerage

SOURCE

Bad Moon Rising
Part 1 - Part 2 - Part 3 - Part 4 - Part 5
Part 6 - Part 7 - Part 8 - Part 9 - Part 10
Part 11 - Part 12 - Part 13 - Part 14 - Part 15
Part 16 - Part 17 - Part 18 - Part 19 - Part 20
Part 21 - Part 22 - Part 23 - Part 24 - Part 25
Part 26 - Part 27 - Part 28 - Part 29 - Part 30
Part 31 - Part 32 - Part 33 - Part 34 - Part 35
Part 36 - Part 37 - Part 38 - Part 39 - Part 40
Part 41 - Part 42 - Part 43 - Part 44 - Part 45
Part 46 - Part 47 - Part 48 - Part 49 - Part 50
Part 51 - Part 52 - Part 53 - Part 54

Posted by Elvis on 10/23/07 •
Section Bad Moon Rising
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