Opinion | How China Keeps Putting Off Its 'Lehman Moment' - The New York Times - 0 views
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In 2008, the U.S. Federal Reserve and Treasury Department also stepped in during the subprime lending crisis to coordinate the restructuring of troubled institutions. But creditor and investor rights and the political risks of bailing out banks limited what American regulators can do; arrangements were reached only after hard bargaining with banks and investment houses. In China, financial institutions have to do what the government tells them.
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The government’s hand is everywhere. The most fundamental asset in China — land — is owned or controlled by the state. The value of China’s currency, the renminbi, is government-managed and regulators are widely believed to intervene in trading on the country’s stock markets.
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Most of China’s biggest and most powerful companies, including all of its major banks, are state-owned, and executives are usually members of the Communist Party, which controls top-level corporate appointments.
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