Rare Look at China’s Burdened Banks – David Barboza
Two years ago, one of China’s largest state-owned banks hired a senior risk adviser who had previously worked for major banks in the United States. His mission was to advise the Chinese bank on how to clean up its books, by helping assess loans that were going bad.
The banker’s career at the China Construction Bank, however, would prove to be contentious and short. It ended with his firing in July, after he repeatedly told top executives that up to $3 billion in bad loans might have been intentionally hidden from outside auditors, just months before the bank’s first sale of stock to public investors. [Full Text]