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Friday, February 18, 2011

China Flexed its Muscles Using US Treasuries - CNBC

READ MORE: China Flexed its Muscles Using US Treasuries - CNBC: "The cables, obtained by WikiLeaks, show that escalating Chinese pressure prompted a procession of soothing visits from the U.S. Treasury Department.

In one striking instance, a top Chinese money manager directly asked U.S. Treasury Secretary Timothy Geithner for a favor.

In June, 2009, the head of China's powerful sovereign wealth fund met with Geithner and requested that he lean on regulators at the U.S. Federal Reserve to speed up the approval of its $1.2 billion investment in Morgan Stanley [MS 30.96 0.27 (+0.88%) ], according to the cables, which were provided to Reuters by a third party.

Although the cables do not mention if Geithner took any action, China's deal to buy Morgan Stanley shares was announced the very next day."

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