China Construction Completes BofA Buybacks, Fed’s Proposed Rule on Foreign Banks: Financial Biz Update

China Construction Bank (CICHF.PK)(CICHY.PK) said Friday that it has finished repurchasing Bank of America Corporation’s (NYSE:BAC) shares through their joint venture, CCB Financial Leasing Corp., which means that the Chinese lender now fully owns the leasing company. The China Banking Regulatory Commission approved the transaction on Thursday. Currently, the joint venture has an initial capitalization of 4.5 billion yuan, or $720 million, and BofA holds 24.9 percent of that amount.

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The chief executive of Royal Bank of Canada (NYSE:RY) says that a proposed new rule by the Federal Reserve Governor Daniel Tarullo, subjecting foreign banks operating in the United States to the same strict oversight rules as their American competitors, would not have much impact on the Canadian firm, Canada’s largest bank. Canadian lenders RBC, Toronto-Dominion Bank (NYSE:TD) and Bank of Montreal have large operations in the US. The new rule would mandate that the largest domestic divisions of foreign banks set up holding companies that would cover all subsidiaries and holding companies would have to comply with the same capital rules that cover American banks.

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