Chinese Government PowerPlay: Chinese Government May Block China Bank’s Investment in Citigroup

[Coronita]

I recall china making a big stink about  CNOOC's unsuccesful bid for CA's Unocal (in which a few folks in Congress attempted to block the takeover, citing national security issues.

Looks like payback's a bitch.

 

This is pathetic that U.S. banks are going around screaming "bail me out please". It's embarassing.

 

 

 

HONG KONG (AP) — Opposition from the Chinese government may stop Citigroup Inc.'s plan to raise capital by selling a stake worth $2 billion (1.3 billion euros) to a Chinese bank, the Wall Street Journal reported on its Web site Monday.

 

The cash-strapped Citigroup, hurt by the mortgage crisis that boiled up last year, has been seeking foreign investors, including China Development Bank, to boost its balance sheet in the face of mounting write-offs.

The Journal reported that opposition from the Chinese government seems to have surfaced over the weekend, citing an unnamed person familiar with the situation. It is not clear whether the deal has been abandoned, the newspaper said.

Yang Hua, director of China Development Bank's news department, said she was not aware of any plans for China Development Bank to invest in Citigroup or any government opposition to such investment, according to the paper.

A telephone call by The Associated Press to the bank rang unanswered after business hours, and in New York, Citigroup spokeswoman Shannon Bell declined to comment.

The U.S. financial group is hoping to announce a capital injection from investors when it releases its fourth-quarter earnings Tuesday, the Journal said.

The cash-strapped Citigroup has already gotten $7.5 billion (5 billion euros) from the Abu Dhabi Investment Authority. On Nov. 26, the ADIA bought a 4.9 percent stake in Citi, becoming its largest shareholder.

The possible failure of the plans of China Development Bank to invest in Citigroup comes after a series of Chinese institutions have put money into struggling Wall Street firms. Most recently, China Investment Corp., the country's sovereign wealth fund, agreed to invest $5 billion (3.4 billion euros) in Morgan Stanley.

China Development Bank, which was established in 1994 and is now preparing to become a commercial lender, got a $20 billion injection Dec. 31 from China Investment Corp.

 

[Arty]

I guess Chinese government is smarter than we thought. Why buy bunch worthless stock from Citi when you can have 3-4 times more when it drops to $10.

[Arty]

I guess Chinese government is smarter than we thought. Why buy bunch worthless stock from Citi when you can have 3-4 times more when it drops to $10.

[Arty]

I guess Chinese government is smarter than we thought. Why buy bunch worthless stock from Citi when you can have 3-4 times more when it drops to $10.

[Arty]

I guess Chinese government is smarter than we thought. Why buy bunch worthless stock from Citi when you can have 3-4 times more when it drops to $10.

[Arty]

I guess Chinese government is smarter than we thought. Why buy bunch worthless stock from Citi when you can have 3-4 times more when it drops to $10.

[bsrsharma]

Very sensible move. Just today morning I watched Hillary campaigning (on TV) when she said “You can’t be tough (against the Chinese toxic toys etc.) when you are talking to your banker”. China should avoid anything that needles the nationalist sentiment during an election year. Citibank’s insolvency is a political hot potato and foreigners would be well adviced to watch it from afar.

[bsrsharma]

Very sensible move. Just today morning I watched Hillary campaigning (on TV) when she said “You can’t be tough (against the Chinese toxic toys etc.) when you are talking to your banker”. China should avoid anything that needles the nationalist sentiment during an election year. Citibank’s insolvency is a political hot potato and foreigners would be well adviced to watch it from afar.

[bsrsharma]

Very sensible move. Just today morning I watched Hillary campaigning (on TV) when she said “You can’t be tough (against the Chinese toxic toys etc.) when you are talking to your banker”. China should avoid anything that needles the nationalist sentiment during an election year. Citibank’s insolvency is a political hot potato and foreigners would be well adviced to watch it from afar.

[bsrsharma]

Very sensible move. Just today morning I watched Hillary campaigning (on TV) when she said “You can’t be tough (against the Chinese toxic toys etc.) when you are talking to your banker”. China should avoid anything that needles the nationalist sentiment during an election year. Citibank’s insolvency is a political hot potato and foreigners would be well adviced to watch it from afar.

[bsrsharma]

Very sensible move. Just today morning I watched Hillary campaigning (on TV) when she said “You can’t be tough (against the Chinese toxic toys etc.) when you are talking to your banker”. China should avoid anything that needles the nationalist sentiment during an election year. Citibank’s insolvency is a political hot potato and foreigners would be well adviced to watch it from afar.

[mixxalot]

Egg Foo Yung on Citbank faces

Uh oh looks like chop suey for the citbank!

[mixxalot]

Egg Foo Yung on Citbank faces

Uh oh looks like chop suey for the citbank!

[mixxalot]

Egg Foo Yung on Citbank faces

Uh oh looks like chop suey for the citbank!

[mixxalot]

Egg Foo Yung on Citbank faces

Uh oh looks like chop suey for the citbank!

[Author]

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