Goldman sells China
Goldman Sachs, putting together the pieces of its TARP repayment, is taking a page from Bank of America’s book and selling off at least some of its China exposure. The stake of Industrial and Commercial Bank of China is being sold at a discount and should raise $1.9 billion – or about a fifth of what it owes in TARP.
Goldman, along with Morgan Stanley and others applied last week to repay the government. This may have more to do with Chinese bank assets being big and, presumably, more liquid than others Goldman has in its vast pool of assets. A more alarming analysis could be that asset quality at Chinese banks is as bad as it ever was.
Interesting that news of the sale should come from a bank that launched so many careers at the U.S. Treasury just as Treasury Secretary Tim Geithner touches down in China.