Loads of money.
Bank of America is seeking $1.5bn from the sale of China Construction Bank shares as it ends an eight-year investment in the second-largest Chinese lender by market value.
The firm joins Goldman Sachs, HSBC and Citigroup in cutting stakes in Chinese financial institutions as new capital rules known as Basel III make it more expensive to hold minority stakes in banks. Bank of America had reaped at least $15bn in sales proceeds and dividends from its investment before the offer, according to Bloomberg calculations based on its filings.
'One of the reasons they’re selling is to get regulatory relief', Charles Peabody, an analyst at Portales Partners LLC, said before the offer was launched. 'Capital you have to hold against' equity stakes in financial firms is high under the latest international standards, he said.
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