Investments

by Randy Chen

Bank Of America Investment Bank of America said Thursday that it was acquiring a 9% stake in China Construction Bank for $3 billion. The investment marks the largest foreign bank purchase in China.

The scary thing is that even if a country doesn' World Bank can potentially scare away foreign investments.

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I used to invest 200k in another Icelandic bank until I learnt about the crossholdings in shares. These banks offer at least 1% more interest than safer, they depend on savers deposits as they cannot borrow at the cheaper money market rates like more secure banks. If one of the fragile banks goes under it can take 6 months to get your money back and 6 months interest is lost. (In USA a bank I invested went under and I got a refund of my FDIC insured deposit within 2 weeks.

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These institutions', American Development Bank, World Bank, U.S. Overseas Private Investment Corporation, U.S. Import Bank, $352 million in approved financing for 18 projects; thus, fossil fuel financing in the Americas outpaces clean energy by a ratio of 63 to 1. Most of this investment in fossil fuels has come from US taxpayers, who are unwitting underwriters of loans, guarantees and subsidies to Big Oil. Although the Americas have obtained over $22 billion in public support for fossil fuels since the Rio Earth Summit in 1992, most of this oil and gas has been exported to the U.S.

Banking Investment June 18, 2005 (AXcess News) Charlotte NC - Bank of America said Thursday that it was acquiring a 9% stake in China Construction Bank for $3 billion. The investment marks the largest foreign bank purchase in China.

Other providers with rates above 6.0% include Citibank, L&C Investments, Heritable Bank, Irish Bank, Icesave and Scarborough building society. There has been a lot of press speculation about the stability of the Icelandic banks, gradings by some of the investment ratings agencies. Moneysupermarket put these concerns to Ashley Whittaker, head of savings at Kaupthing Edge. You may be interested in watching this interview if you are worried about investing money with the bank.

Investment Solution Strategic Analysts were mixed in the bank's decision believing that a move into China could be a risky venture that could cause huge losses due to China's banking practices. Others think that Bank of America made the move at the right time, citing China's booming economy.Bank of America was given the right to boost its stake in China Construction Bank to 19.9 percent. B of A Chairman Ken Lewis called the move an opportunity to be involved in one of the world's fastest-paced economies. Lewis gave no indication that Bank of America would up its investment in the state-owned mortgage lender, though he was generally upbeat about the bank's decision to invest in China.

TierOne Corporation is the holding company for TierOne Bank (the Bank), oriented bank that operates from 58 banking offices located in Nebraska, southwest Iowa and northern Kansas and two loan production offices in Colorado. The Bank's principal business is gathering deposits from the general public in its primary market area and investing those deposits, together with funds generated from operations and borrowings, in loans and investment securities.

Investment Banking Services China Construction Bank is one of the four largest banks in China. Bank of America is the third largest bank in the United States.

Bank Investment The move by Chinese officials to open up its banking to foreign investors may be a cry for experienced financial management to help in curbing corruption and bad lending practices before the banking sector is required to open up to foreign competition under international trade agreements.

Alternative Investment Political analysts feel the move will improve US and China relationships, which have been strained over military buildups and trade issues.

Online Investment Services Investors are pondering the outcome of Bank of America's move and wondering if other US banks are considering following suit and buy into other Chinese banks.Wells Fargo Bank (NYSE: WFC) closed up 14 cents at $61.59. US Bancorp (NYSE: USB) was unchanged at $29.52. Washington Mutual (NYSE: WM) was up 32 cents at $40.69. Citigroup (NYSE: C) was down 8 cents at $47.69, but in after-hours trading the bank's stock climbed 3 cents. Wachovia Bank Corp. (NYSE: WB) was unchanged at $50.61.Bank of America (NYSE: BAC) closed at $46.64, up 21 cents.

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