|By Kirsten Valle Pittman, The Charlotte Observer, N.C.|
The sale will leave
Monday's announcement came a few months after
"Our decision to sell the bulk of our remaining shares in
The bank first invested in CCB in 2005 under then-CEO
The investment proved profitable:
And in August,
Analysts said the latest sale isn't surprising, given the continued pressure to raise capital, the recent decline in Chinese bank valuations and the fact that CCB isn't an essential asset.
"It's a necessary move," said
Still, the sale of a profitable asset also reflects the stress the bank remains under: "If there were no pressure, they would be more inclined to hold onto it," Townsend said.
The sale of most of
The bank also has a strategic partnership with CCB that allows the banks' customers free access to both banks' ATMs, for instance.
That strategic assistance agreement with CCB remains in place, the bank said Monday.
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|Source:||McClatchy-Tribune Information Services|