Two Banks Gain Access Within China(JP Morgan Chase & Morgan Stanley)

WSJ ^ | 01/07/11 | ALISON TUDOR And PETER STEIN

[TigerLikesRooster]

Two Banks Gain Access Within China

By ALISON TUDOR And PETER STEIN

HONG KONG—J.P. Morgan Chase & Co. and Morgan Stanley have both won approval for securities joint ventures in mainland China, the first U.S. firms to gain such access in six years.

The new ventures will allow the two Wall Street banks to underwrite stocks and bonds in mainland China. Like other international investment banks, both firms can already underwrite deals for Chinese companies in Hong Kong, New York and other markets.

The approvals, announced by China's securities regulator, are the first for any U.S. banks in China since Goldman Sachs Group Inc. got the go-ahead to set up a China venture in late 2004. Since then, several European banks have established partnerships, including UBS AG, Deutsche Bank AG and Credit Suisse Group.

The announcements also provide a buzz of positive news on U.S.-China business relations ahead of a trip by Chinese President Hu Jintao to Washington later this month. Such high-level political summits often coincide with favorable bilateral trade deals

[TigerLikesRooster]

I hope they screw up China as badly as they did with U.S.. With Goldman Sachs already in, maybe things are looking up on that front.:-)

[TigerLikesRooster]

P!

[Uncle Ike]

So now they can start funnelling Fed Dollars directly to China??

[TigerLikesRooster]

Do they intend to export hyperinflation to China?

[clee1]

Agreed.

[The Comedian]

Ah, lovely, more bankster treason on the morning air...

Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

[GlockThe Vote]

Just great, now the chinese will really want a war with us for exporting these criminals to their nation.

[KarlInOhio]

Are the Chinese going to lean on these companies to get access to all US banking data much as the US government has leaned on Swiss banks to break Swiss banking secrecy?

[Leisler]

They did once before with JP Morgan and the Boxer rebellion. The then corrupt Chinese government got into debt with Morgan and others and eventually the Chinese peasants rose up and attacked the ruling Chinese royalty, government and forign banks and citizens that partnered with the then Chinese leadership in all sorts of unwanted construction/railroad schemes to enrich themselves and impoverish the citizens. ( Think Chicago, High Speed Rail, contractors, Wall Street bonds vs us taxpayers )

[Fee]

Yep. First the Chicoms will let JPM and MS taste the lucractive profits in underwriting Chinese IPO’s. Once hooked onto the profits, China will ask JPM and MS to provide some low level US confidential document if they do not want to lose future lucrative businesses. CEO will conclude the requested US gov documents though confidential contain common knowledge info seemed harmless to furnish in return for keeping the business access alive. Problem is the act is still illegal and the Chicoms will use the transaction to blackmail for more higher level US documents. That is how espionage works. Remember there are many US Treasury workers who want a job in JPM and MS after leaving the government, and they are more then willing to comply with JPM and MS back channel requests for info.