US authorities blocked Minsheng, the Chinese bank, from acquiring a Californian lender in a deal that could have saved almost $300m of taxpayers’ money and $1.4bn from an industry insurance fund, say people familiar with the matter.The U.S. and China signed a memorandum of understanding to allow increased Chinese investment in U.S. banks, but I'll believe it when I see it.
Minsheng had asked the Federal Reserve for permission to acquire UCB, a San Francisco bank, but the application was not approved before the struggling US lender had to be seized two weeks ago by the Federal Deposit Insurance Corporation.
2009-11-20
Protectionism is expensive
Block on Minsheng deal costs US $1.7bn
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