BofA Move May Jeopardise Relations With CCB

In an move that has surprised onlookers of the US banking system, Bank of America (BofA) nearly doubled its stake in China Construction Bank (CCB) on November 18. Yes, BofA is one of the strongest banks that has emerged from the current crisis due to its massive deposit base, but considering the fact that it accepted US$25bn from the US government's TARP and has been raising capital via stock offerings, so far around US$10bn, to help fund the integration of Merrill Lynch and the assumption of write-downs from Countrywide Financial, it definitely bucks the trend.

To read the full article, please choose one of the following options: