[Former Proud Canadian]

Why would ANYONE put deposits in Communist Chinese banks???? No rule of law. No English common law. No history of democracy or fairness, especially to foreigners. No convertible currency.

[editor-surveyor]

You said it so much more politely than I was going to...

[fightinJAG]

And no FDIC!

Does anyone believe the ChiComs would be stupid enough to offer basically FREE INSURANCE guaranteeing the ENTIRE BALANCE OF ONE’S BANK ACCOUNT to anyone who walked in off the street and plunked down a wad of cash?

And then ENLARGE that exposure of the U.S. taxpayer during the worst financial collapse since Great Depression?

[RayChuang88]

No rule of law. No English common law. No history of democracy or fairness, especially to foreigners. No convertible currency.

In fact, there's also another problem: Chinese banks, unlike American banks, a also highly-leveraged, too. One wrong move in the Chinese economy and those banks will collapse like a house of cards.

Indeed, one good thing about what happened in 2008 was it forced American banks to stop being so highly leveraged. A bank like JPMorgan Chase quickly went out of their way to use TARP money to rebuild their asset base, paid the TARP loan back quickly, and as such they will likely be around for a long time to come. Indeed, do not be surprised that many European banks now suffering from the European sovereign debt crisis could become takeover targets for American banks a few years from now.