Goldman Sachs vs. Chinese Banks

From Institutional Investor:

Financial analysts who claim that China’s big banks will soon catch up with their Western counterparts in the league tables demonstrate a lack of understanding about what it takes to be a world-class player in this industry. Goldman, Sachs & Co. became a powerhouse by developing its culture, talent pool and infrastructure over the past century under the right mix of regulation and opportunity. For Chinese banks to reach the same competitive plane would likewise take decades, if they could manage it at all.

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Ann Lee is an adjunct professor at New York University, a former visiting professor at Peking University, an investment banker and a fixed-income trader.

3 Responses to "Goldman Sachs vs. Chinese Banks"

  1. george harter   September 11, 2009 at 7:19 pm

    This is a sad commentary. Yes, China is very corrupt but the US economy is also becoming functionally crippled by high level Government-WallStreet collusion.GS has been on the scene as a real player since the 1920s and have done their best to manipulate US financial markets since that time. With super computers they are now able to manipulate the market on a daily basis with the ultimate-Government Guarenteed Financial support. Please-Do Not recommend a GS type solution for China!!!!GS is already over there coaching Chinese banks on how to develop native derivative markets. As a Professor you must certainlz be aware of how dangerous that will be to China.Our crash has crippled the US economy. A derivatives caused crash in China may be politically fatal for the nation with verz severe social consequences(NOTE-This may destroy the Feds largest and main supporter, end of 0% interest rates!!!!!)George HarterBaghdadontheHudson, USA

  2. Wilson   September 12, 2009 at 11:15 am

    Mr. George Harter,If you generalize things in such a non introspective way by claiming that China is corrupt, you got to admit the US is even more corrupt.I do not think the US is corrupt if I choose to look at matters in a more introspective ways. If I choose to generalize things and come to conclusions using very superficial analogies, then one must admite the US is even more corrupt.To generalize things in your fashion:1. Greatest Ponzi SchemeRank Number one: Madoff, US citizenRank Number two: Mr. Ponzi himself, US citizen2. Greatets corportae & accounting fraud in historyRank Number one: Enron, US listed public company. Criminal partner, Arthur Anderson, US major accounting firm.Rank Number two: World Com, US listed public company. Criminal partner, Arthur Anderson, US major accounting firm.3. Biggest government defaultRank Number one: US government. Incident in 1971, US government defauted to all global central banks on its gold obligations as promised under the Bretton Woods System.Thus if we are to generalize things in your fashion, your comment should have been edited as such:” This is a sad commentary. Yes, China is very corrupt but the US has the most corrupt history, and its economy is also becoming functionally crippled by high level Government-WallStreet collusion.GS has been on the scene as a real player since the 1920s and have done their best to manipulate US financial markets since that time. With super computers they are now able to manipulate the market on a daily basis with the ultimate-Government Guarenteed Financial support. Please-Do Not recommend a GS type solution for China!!!!GS is already over there coaching Chinese banks on how to develop native derivative markets. As a Professor you must certainlz be aware of how dangerous that will be to China.Our crash has crippled the US economy. A derivatives caused crash in China may be politically fatal for the nation with verz severe social consequences(NOTE-This may destroy the Feds largest and main supporter, end of 0% interest rates!!!!!)”Each country at its distintive economic development phase has its different forms of corruption. Corruption derives from one part of the human nature which is greed. Whether one is Chinese or Canadian or American, we all have that side of our nature. You can say that corruption in certain Chinese state owned enterprise occurs, and may relatively speaking be more noticeable than other developed counties’s state owned enterprises.But you do not generalize things and say that China is corrupt.Time to be more introspective and not to generalize things, especially when one is making a public statement.Apart from that, the rest of your comment does make sense. China does not want or need a GS solution at all!

    • Anonymous   September 13, 2009 at 12:24 am

      Hallo WilsonReally it is funny listening to your ilk of chinese nationalists. USA IS MORE CORRUPT THAN CHINA.Yes, yes, yes or maybe. But maybe really the two countries are two sides of the same coin….Grotesque over investment in China vs. ponzi scheme government finances in the US……Grotesque over lending in China vs. equally grotesque throwing money at the banksters in the US..I believe both countries are heading for the abyss, while both are holding on to each others throat they will go over the precipice together. The chinese can´t let go because they need to keep their currency undervalued and the US can´t let go because they need China to buy T-bills.But finally after the dust has settled China will come out ahead. So yes my chinese nationalist friend, your country will come out ahead. But the cataclysm will be terrible. And maybe by then you and the likes of you will hopefully have stopped patrolling the net looking for offenders of China. Better concentrate on the wrongs in your own country…