China Plays Tit-For-Tat Over U.S. Banks’ Access To Domestic Market

Deutsche Bank’s newly announced tie up with Shanxi Securities to offer investment banking services is expected to get the official nod later this year. Credit Suisse has recently got approval for its joint venture with Founder Securities, the first such since the moratorium on securities joint ventures was lifted in December. But Morgan Stanley and Citigroup are still waiting for approval for their jv deals and Merrill Lynch, JP Morgan and Lehman Bros. have got no farther than discussions with potential partners.

Bias against Wall St. firms? The FT thinks it is.

What would break the logjam for U.S. investment banks?

This Bystander would wager that it would be Washington letting China’s leading banks set up and expand branch networks in the U.S. as they have wanted to do for years.

2 Comments

Filed under China-U.S., Economy, Markets

2 responses to “China Plays Tit-For-Tat Over U.S. Banks’ Access To Domestic Market

  1. JD

    It’s true that China is titting but as of yet no one is tatting. Chinese authorities seem to enjoy shooting themselves in the feet.

  2. This is reminiscent of the you-give-me-one, I’ll-give-you-one opening of Japan’s financial markets to foreign firms in the 1980s.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s