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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Thursday, June 23, 2005

Buying Business.....

Rumor has it that UBS is going to take a $1 billion stake in Bank of China as a strategic investor. Like Bank of America's silly $3 billion stake in China Construction Bank, UBS also wants to have a stake in a local bank since they have no lending operation in China nor in Hong Kong. By taking stakes in these institutions, these banks will make huge fees in the underwriting of these banks when they do finally come to market. There must be a quid pro quo...take a stake and get the underwriting business. Citigroup decided to not take a stake in China Construction Bank, probably since they realized that it was a stupid investment. But they also have been dropped as a underwriter on the deal.

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