Unformatted text preview: U.S. are adequately supervised in their home country. Questions: 1. Why is ICBC really doing this? Is it efficient to follow its customers, or it the hubris hypothesis – that managers want to build a bigger, more expansive empire? 2. Is it likely that the U.S. offices will be efficiently run, given the research that shows that a) foreign-owned banks in developed nations are usually less efficient than domestically-owned banks, and b) state-owned banks are generally the least efficient? 3. Should U.S. regulators approve the deal? Is there a prudential concern about the supervision in China? 4. If this deal is approved, is it just the tip of the iceberg? Will many more Chinese acquisitions of U.S. banking organizations follow? 5. Should we be worried about the supervision of these banks or about the availability of credit to U.S. companies, given the research that shows that foreign-owned banks make less domestic loans?...
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- Spring '11
- People's Republic of China, ICBC, U.S. regulators, Bank of East Asia