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Last year China Construction Bank's net profit soared 10% to $11.9 billion. In the same period, Bank of America, which at the time owned some 19% of the Chinese lender, earned just $4 billion, down 73% from 2007. That's all you need to know to understand why Bank...

Author: /time Magazine | Title: Why China's Banks Are Stronger than America's | 6/3/2009 | See Source »

What was up is now down and the other way around, and it's going to stay that way for some time. Former powerhouses such as Bank of America and Citicorp have turned into shadows of their former selves as they shed assets and withdraw from foreign markets. Meanwhile, lenders...

Author: /time Magazine | Title: Why China's Banks Are Stronger than America's | 6/3/2009 | See Source »

Who has the money to buy them? Nomura found that Asia's banks are significantly underleveraged, meaning they have plenty of muscle for acquisitions. China's leverage ratio is 15.8, Hong Kong's is 14.3, India's is 11.6, South Korea's is 16.7. Having gone through rehab after the...

Author: /time Magazine | Title: Why China's Banks Are Stronger than America's | 6/3/2009 | See Source »

As messages go, it doesn't get much clearer than that. But Geithner has known all along that there were two critical first steps the U.S. had to take in order to begin the process of reassuring its creditors. It had to demonstrate that it had a grip on the...

Author: /time Magazine | Title: Geithner Gets a Warmer Reception in China | 6/2/2009 | See Source »

And just yesterday - fortuitous timing for Geithner - both the U.S. and China reported economic data that buoyed equity markets on both sides of the Pacific. In China, the monthly purchasing manager's index for manufacturing was stronger than expected, showing "for the first time that policy is really gaining traction...

Author: /time Magazine | Title: Geithner Gets a Warmer Reception in China | 6/2/2009 | See Source »

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