First Chinese Lender Will 'Open the Way': Cohen

After appearing on "The Strategy Session" on Tuesday, Rodgin Cohen, senior chairman of Sullivan & Cromwell, continued the discussion off-air with David Faber, about the Industrial and Commercial Bank of China acquiring the Bank of Asia's U.S. Unit, making it the first Chinese lender to buy a U.S. retail bank.

"This one will be the first and I suspect that it will be approved. If it is, I think it will definitely open the way for other China-U.S. deals. They're not going to be mega deals, but there will be deals," Cohen said.

What's Next for Financials, Fannie, & Freddie
What's Next for Financials, Fannie, & Freddie   

"For nineteen years, the Chinese banks, and interestingly enough the Indian banks, have been barred from buying U.S. banks by a rather obscure provision in a bill, which was enacted in 1991, which requires there to be a consolidated comprehensive supervision of non-U.S. banks buying U.S. banks," he added.

Check out our entire conversation with Rodgin Cohen in this web exclusive to see why Cohen thinks we need a revolutionary approach in the housing finance system because "so long as it's the GSE's (government-sponsored enterprise) [holding these mortgages], we have a problem."

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