Wikileaks:China uses its treasury holdings to get special favors.

Discussion in 'Economics' started by Grandluxe, Feb 18, 2011.

  1. I read this

    NEW YORK (Reuters) – Confidential diplomatic cables from the U.S. embassies in Beijing and Hong Kong lay bare China's growing influence as America's largest creditor.

    The cables, obtained by WikiLeaks, show that escalating Chinese pressure prompted a procession of soothing visits from the U.S.Treasury Department. In one striking instance, a top Chinese money manager directly asked U.S. Treasury Secretary Timothy Geithner for a favor.

    In June, 2009, the head of China's powerful sovereign wealth fund met with Geithner and requested that he lean on regulators at the U.S. Federal Reserve to speed up the approval of its $1.2 billion investment in Morgan Stanley, according to the cables, which were provided to Reuters by a third party.

    Although the cables do not mention if Geithner took any action, China's deal to buy Morgan Stanley shares was announced the very next day.

    The two Treasury officials to whom the cables were addressed, Deputy Assistant Secretary for Asia Robert Dohner and Deputy Assistant Secretary for International Monetary and Financial Policy Mark Sobel, declined through a spokesperson to comment for this story. The State Department also declined to comment.


    That proves despite ignorant comments made by many people(in particular one very ignorant rosbif) that the debtor now owns the bank , China now has tremendous lobbying influence in US politics due to its holdings.
    Even timmy geithner has to kow-tow and make things "happen."