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Press Releases
East West Bank, Pasadena, California Assumes All the Deposits of United Commercial Bank, San Francisco, California
United Commercial Bank Fact Sheet: Discussion of Additional Issues
Cause of Failure
United Commercial Bank (UCB) had substantial concentrations in commercial real estate lending and acquisition, construction and development loans in the declining U.S. real estate market. Earlier identification of problem loans may have been impeded through alleged fraud exercised by former senior management, currently under investigation by the relevant authorities. Loan losses depleted earnings and eroded capital. The FDIC issued a public Cease and Desist Order on September 3, 2009 where the FDIC and California Department of Financial Institutions stated that there was reason to believe that the Bank had engaged in unsafe and unsound banking practices. The Order raised specific concerns with respect to management's use of policies and practices that were detrimental to the Bank and jeopardized the safety of its deposits. United Commercial Bank Holdings issued a press release on September 8, 2009 announcing the departure of UCB's CEO and COO and the adoption of the findings and recommendations of the company's Investigation Subcommittee of the Board Audit Committee's independent investigation that allowed UCB to move forward with its financial restatement.
International Operations
The resolution of UCB demonstrates value, and prospects, for international cooperation in resolutions of banks and other financial firms. The key factor was early contact with foreign supervisors, careful discussion and understanding of their authority and prerogatives, and the flexibility to structure a transaction that accommodates their statutory requirements while ensuring a "least costly" resolution for the FDIC. These contacts helped to ensure a "whole bank" resolution by facilitating the smooth purchase of the branch operations in Hong Kong and the subsidiary in China. The FDIC did not incur any loss to the DIF from completing a whole bank transaction, and in fact reduced the DIF exposure by avoiding ring fencing by foreign authorities. Planning with the Hong Kong Monetary Authority and the China Bank Regulatory Commission about the resolution of UCB has been ongoing since discovery of the problems
Impact on Holding Company
UCBH Holdings, Inc., the holding company of UCB, was approved by the Treasury Department for $298.7 million in capital through the TARP CPP on November 6, 2008 through the procedures established by the program.
Policy Statement
To complete this transaction, the holding company of the acquirer raised equity capital. The FDIC's recent Statement of Policy on Qualifications for Failed Bank Acquisitions does not apply to an established bank holding company's acquisition of deposits and assets from a failed institution. The FDIC encourages private equity participation in failed bank acquisitions through private investment in established bank holding companies.
United States Regulators Blocks China Minsheng Banking Corporation
Ltd. To Acquire UCBH Holdings Inc's United Commercial Bank-Reuters
Thursday, 19 Nov 2009 09:35pm EST
Reuters reported that United States regulators blocked China Minsheng
Banking Corporation Ltd. from acquiring United Commercial Bank (UCB)
in a deal that could have saved $1.7 billion in taxpayers' money and
insurance. China Minsheng Banking Corporation Ltd. had asked the
Federal Reserve for permission to acquire UCB, but the application was
not approved before the struggling California-based lender had to be
seized two weeks ago by the Federal Deposit Insurance Corporation. The
Fed had warned it could not approve China Minsheng Banking Corporation
Ltd.'s application quickly because it was required by law to closely
consider Chinese regulatory practices. The seizure was also expected
to cost China Minsheng Banking Corporation Ltd. $120 million for the
9.9% stake it had in UCBH Holdings Inc, the parent of UCB.
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US Wants China to Buy into Its Small Banks
November 20, 2009 · Leave a Comment
US Wants China to Buy into Its Small Banks
FINANCIALS, BANKS, BANKING, CHINA, US, ASIA, TAKEOVER, BARACK OBAMA,
MERGER, ACQUISITION
Reuters | 17 Nov 2009 | 04:56 AM ET
Chinese and U.S. regulators are negotiating a pact aimed at
encouraging Chinese financial institutions to buy into small and
medium-sized banks in the United States, bankers briefed on the plan
said on Tuesday.
Chinese bankers have complained that it’s been difficult for them to
set up branches or invest in banks in the world’s leading economy, due
partly to U.S. regulators’ tough supervision and strict approval
process for financial deals.
But the global financial landscape has been revamped by the credit
crisis, and cash-rich Chinese banks are now bigger players on the
world scene and are scouting around for investment targets.
To illustrate the global shake-down, Industrial and Commercial Bank of
China is now the world’s biggest bank by market value, while
Citigroup , once the world’s No.1 bank, is worth the same as a second-
tier commercial bank in China.
Two senior Chinese bankers said they had been invited this year by
U.S. officials, investment bankers and financial advisers to look at
several potential investments in U.S. banks, mostly in financial
trouble.
“The trend is already there,” said one Chinese banker.
“Now they’re going to make this into an agreement to show there’s a
change in official attitude towards Chinese investments in the U.S.
banking system,” said the banker, who declined to be identified due to
the sensitive nature of the matter.
A Sino-U.S. Memorandum of Understanding (MOU) to encourage Chinese
banks to invest in U.S. lenders is in the making, and China’s banking
regulator has sought feedback from big domestic banks, bankers told
Reuters.
Over 100 U.S. banks have already been seized by regulators in the
financial crisis, and more bank failures could come as the Obama
administration also needs more capital to take over troubled lenders.
No Hurry to Buy?
The MOU would be part of a new strategic framework that ranges from
climate change to international cooperation, Hong Kong’s South China
Morning Post reported on Tuesday.
The hope is to announce a deal during U.S. President Barack Obama’s
current visit to China, the newspaper said, citing unnamed mainland
bankers briefed on the matter.
In October 2007, Minsheng Banking Corp, China’s seventh-largest by
assets, agreed to buy 9.9 percent of San Francisco-based UCBH Holdings
for more than $200 million in the first investment by a mainland
Chinese bank in a U.S. bank.
But Minsheng has seen huge paper losses on its investment in UCBH,
whose business focuses on mortgages for many Chinese Americans on the
U.S. West Coast, as UCBH shares sank in the financial crisis.
Other Chinese banks such as ICBC and Merchants Bank have also shown an
interest in expanding in the United States, but their approach may be
different.
“I feel lots of uncertainties still exist in the U.S. financial market
and we want to keep a distance from these toxic assets at this
moment,” said Ma Weihua, CEO of Merchants Bank, China’s sixth-largest
lender by assets.
“Our attitude towards U.S. financial assets is very conservative right
now,” Ma told Reuters by telephone.
Merchants Bank opened its first U.S. branch in New York about a year
ago, and Ma said the branch would hire more local staff to expand its
business there.
Slideshow: The World’s Safest Banks 2009
Copyright 2009 Reuters. Click for restrictions.
Independent Research | Broker Research
% Shares Owned: 51.75% # New Positions: 17
# of Holders: 131 # Closed Positions: 35
Total Shares Held: 62,325,321 # Increased Positions: 48
3 Mo. Net Change:
-16,038,214
# Reduced Positions: 68
# Net Buyers:
-20
Find out more about UCBH.PK
Price Performance
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Looks like we still have some big shareholders.
At this point to save a bank wouldn't it be beneficial to have China back it? confused... I guess not! :(
New 52-week low 0.038 was created today! Sell at the bid ASAP before
the CH7 trash hits 0.01 or even 0.001. I should short at 0.1~0.135!
He is! not only here but everywhere!
Who are selling the shares at 0.05 today? As a CH7 bank how much it
worths now? Anyway at 0.05 the market value is over $6M and it is
too high. I bet very soon the pos scam will hit 0.01 as IRWNQ did...
You are full of Sh!tzzz ! eom
0.05 must be the forever unbreakable bottom! I am glad to own over
8M cheap shares at 0.06 ~ 0.065. I will sell at 0.08 ~ 0.135 later!
BOUGHT SOME AT .0866 today for dead cat bounce
Thanks :) It's what I figured but had to be sure considering Yahoo and Google have it X100
Much appreciated!
Closed yesterday @ .091
What is the the cost per share?? Investors hub say's .091 and google finance along with Yahoo finance say .91 ??? Please advise
Greatly appareciated :) thanks
They have not traded in a while, a week maybe, today was their first day back. They were closed earlier this month...
UCBH....Yahoo Finance
do you what caused the big drop?
is anyone trading this? what's your thought?
I think it will trade again, probably open around .30's
so it is a total loss here for investors..?
ACQUIRER up $4s..
UPDATE 1-East West shares soar after it snaps up key rival
Mon Nov 9, 2009 3:41pm EST
* Co sees profitability in first half of 2010
* Sees UCB deal to be highly accretive
* Shares up 57 pct on heavy volumes
(Recasts; Adds conference call details, analysts comments, updates share movement)
By Brenton Cordeiro
BANGALORE, Nov 9 (Reuters) - East West Bancorp (EWBC.O) said it expects to return to profitability by the first half of 2010, following its regulator-assisted acquisition of key rival United Commercial Bank (UCB) -- a unit of UCBH Holdings Inc (UCBH.O) -- on Friday.
"This acquisition is highly accretive and will return East West to profitability in the very, very near term," Chief Executive Dominic Ng said on a conference call with analysts.
Shares of East West Bancorp (EWBC.O) jumped to as much as 57 percent to touch a high of $13.57 in late afternoon trade Monday on Nasdaq, with the number of shares traded over nine times their 50-day moving average volume.
Analysts cheered the deal, with Morgan Stanley upgrading East West to "overweight" from "equal-weight," and at least two other brokers raising their price targets on the stock.
The deal, which comes with reduced risk because of the Federal Deposit Insurance Corp (FDIC) backstop on future credit losses, ups East West's asset base more than 50 percent to $19 billion and expands its presence among the Chinese-American population it primarily serves.
"This is a highly attractive acquisition for East West because it takes out one of its long-time key competitors, making it the dominant bank in the Chinese-American bank niche," BMO Capital Markets analyst Lana Chan said.
Chan raised her price target on the bank's stock to $15 from $12.
East West, which caters to the Chinese community in the United States, acquired San Francisco-based UCB in an FDIC-assisted transaction late on Friday, which includes UCB's 63 U.S. branches, a branch in Hong Kong and a subsidiary, UCB-China, in Shanghai. [ID:nN06212635]
"The deal also includes UCB-China, which gives East West a rare and valuable Chinese banking license," analyst Joe Morford of RBC Capital Markets said in a note to clients.
On Friday, East West said it completed a capital raise of $500 million through the private placement of 18.2 million common shares at $9.04 per share.
The accretion from acquiring UCB more than offsets the dilution from the capital raise, BMO's Chan said.
In July, East West offered 11 million shares at $6.35 per share. (Reporting by Brenton Cordeiro in Bangalore; Editing by Vikram S Subhedar, Unnikrishnan Nair)
MINSHENG ON ITS OWN IPO PLUS 9 PERCENT STAKE IN UCBH
Minsheng plans $4.7bn IPO
By Jamil Anderlini in Beijing
Published: November 8 2009 22:43 | Last updated: November 8 2009 22:43
China Minsheng Bank will aim to raise up to $4.68bn through Hong Kong’s largest initial public offering this year in a move that should solidify China’s dominant position in the global IPO market.
The country’s first privately owned lender will on Monday embark on a long-delayed roadshow in preparation for what will also be the world’s fourth-largest IPO of 2009, if the shares are priced at the top end of a range of HK$8.50-HK$9.50.
EDITOR’S CHOICE
Chinese bubble fears as funds flow into IPOs - Jul-29
China State Construction in $7bn IPO - Jul-21
Lex: Investment banking in China - Jun-16
Asia braced for wave of flotations - Jun-07
Emerging market equities outperform west - Jun-07
UBS and Merrill out of running for AIA - Jun-07
If successful, Minsheng’s listing will give China five of the top 10 global IPOs this year.
The bank plans to sell 3.32bn shares, or 15 per cent of its enlarged share capital, to raise as much as $4.1bn and could sell an additional 498m shares to take the total up to $4.68bn under a “greenshoe” option if the offering is heavily oversubscribed, which is often the case in Hong Kong.
Unlike almost every other Chinese lender, Minsheng was established with investment from private entrepreneurs and virtually no state funding in 1996, but it is still in effect controlled by the government through Communist party appointments of top executives.
The bank was listed on the Shanghai stock exchange in 2000 and has suspended previous plans to list in Hong Kong on at least two occasions.
People involved in the sale said there was huge interest from institutional investors wanting to buy into the cornerstone tranche of the issue but the final price of the shares will be set in 10 days, depending on the result of the roadshow. Shares are expected to start trading in Hong Kong on November 26.
IPOs in Hong Kong are open to global investors and allow Chinese companies to raise foreign exchange, while Shanghai listings are open only to domestic investors who cannot freely convert their funds out of renminbi.
Minsheng’s plans to expand beyond China’s borders were dealt a blow on Friday when United Commercial Bank, a large San Francisco lender with branches in Hong Kong and Shanghai, became the 120th US bank to fail this year.
Minsheng owns 9.9 per cent of UCBH Holdings, United Commercial’s parent company, and by the end of September had been forced to write down 93 per cent of the $126m it has invested over the past two years.
The bank failure map is color-coded, with states having the greatest number of failures highlighted in red, and states with no failures in grey.
The most significant failure -- and the seventh-largest during the 2008-2009 crisis -- was United Commercial Bank of San Francisco, the main subsidiary of UCBH Holdings (UCBH Quote). The Federal Deposit Insurance Corp. and Chinese bank regulators worked together to arrange for East West Bank of Pasadena, Calif. to take over United Commercial's operations, as well as its UCB-China subsidiary in Shanghai.
East West Bank is a subsidiary of East West Bancorp (EWBC Quote). United Commercial had $10.2 billion in assets when it failed, and the FDIC estimated the cost of the failure to its insurance fund would be $1.4 billion.
Georgia regulators closed United Security Bank of Sparta and the FDIC sold the failed bank's deposits and its total assets of $157 million to Ameris Bank of Moultrie, Ga., a subsidiary of Ameris Bancorp (ABCB Quote). The FDIC agreed to share in losses on $123 million of the acquired assets and estimated the cost to its insurance fund would be $58 million.
The Office of Thrift Supervision shuttered Home Federal Savings Bank of Detroit, and the FDIC arranged for Liberty Bank and Trust Co. of New Orleans to assume the failed thrift's deposits and its $14.9 million in total assets, with the failure costing the insurance fund an estimated $5.4 million
State regulators in Minnesota took over Prosperan Bank of Oakdale, with the FDIC selling the failed bank's deposits and $174 million of Prosperan's $200 million in assets to Alerus Financial NA of Grand Forks, N.D., a subsidiary of Alerus Financial ( ALRS.PK Quote). The FDIC agreed to share in losses on the acquired assets and estimated the cost to its insurance fund would be $60.1 million.
The Missouri Division of Finance closed Gateway Bank of St. Louis. The FDIC arranged for Central Bank of Kansas City, Mo. to assume the failed bank's deposits and its total assets of $27.7 million and estimated the cost to its insurance fund would be $9.2 million.
Georgia leads all states with 26 bank or thrift failures during 2008 and 2009, followed by Illinois with 20, California with 19, and Floridawith 11 failures.
Large holding companies acquiring failed institutions during 2008 and 2009 have included JPMorgan Chase (JPM Quote), which acquired Washington Mutual, the largest-ever bank or thrift to fail in the U.S; U.S. Bancorp (USB Quote); SunTrust Banks (STI Quote); Regions Financial (RF Quote); Fifth Third Bancorp (FITB Quote); Zions Bancorp (ZION Quote); and PNC Financial (PNC Quote); and BB&T (BBT Quote).
Nov. 7 (Bloomberg) -- UCBH Holdings Inc.’s United Commercial Bank, a San Francisco-based lender with $11.2 billion in assets, was seized by regulators, becoming the 120th U.S. bank to fail this year.
United Commercial was bought by East West Bancorp of Pasadena, California, the Federal Deposit Insurance Corp. said. United Commercial was the fifth U.S. lender to be seized by regulators yesterday as banks fail at the fastest rate since 1992.
East West paid a premium of 1.1 percent to acquire United Commercial’s $7.5 billion in deposits, and picks up 63 U.S. branches as well as banking operations in China. East West said it is now the second-largest independent bank based in California, and the largest in the U.S. specializing in serving Asian-Americans.
“This is a transformational event,” East West Chief Executive Officer Dominic Ng said in the statement. “The transaction strengthens our presence in key markets throughout the U.S. and Asia.”
Banks are buckling under the weight of souring real estate loans caused by the worst recession in more than 25 years. The Labor Department said the unemployment rate rose to 10.2 percent in October, a 26-year high. Banks shut yesterday had total assets of $11.6 billion and deposits of $7.9 billion.
East West and the FDIC will share losses on $7.7 billion of assets. The agency agreed to share losses on other deals, including Ameris Bancorp’s acquisition of United Security Bank of Sparta, Georgia. Based in Moultrie, Georgia, Ameris paid a premium of 0.36 percent to purchase $150 million in deposits. The loss-sharing agreement covers $123 million of assets.
Haulted ? Wuz Up ? .33/.35 ? Symbol change ? "E" added ?
Looks like a rough open today. .89/.90 ? It's only 1k ~ why wouldn't that idiot wait till open and sell at .97 ?
wow ~ Bounce today ???
Dow up 100 points ~ this POS down. Would hate to see this on a down day /
Back in today for what it's worth ~~
UPDATE - China Minsheng Bank cannot take control of UCBH -source
10/14/2009 3:36:00 AM (Reuters)
BEIJING, Oct 14 (Reuters) - Minsheng Bank (600016.SS), China's first listed non-state lender, cannot take a controlling stake in U.S. bank UCBH Holdings Inc (UCBH.O), because of regulatory limitations, a source told Reuters on Wednesday. "The United States regulatory authorities have restrictions; it is impossible for us to buy a controlling stake in a U.S. bank," said the source, who requested anonymity due to the sensitive nature of any possible investment. The bank's board was also split over whether it would increase its 9.9 percent stake in the troubled U.S. bank, the source said. China has encountered difficulties making big acquisitions overseas because of regulatory hurdles. [ID:nPEK371939] Shares of UCBH Holdings jumped 64 percent earlier this month following a media report of a possible investment by Minsheng Bank. Analysts have said an investment by the Chinese bank would be a beneficial for UCBH, which mainly caters to the Chinese-American community. Chairman Dong Wenbiao said in March that the Shanghai-listed bank planned to lift its stake in California-based UCBH Holdings, the parent of United Commercial Bank, to 19 percent. [ID:nHKG263137] UCBH, which is operating under an enforcement order from the Federal Deposit Insurance Corp and the California Department of Financial Institutions, said last month that two top executives had resigned after a board audit panel raised concerns about the actions of several current and former officers. ($=6.83 yuan) (Reporting by Xie Heng; Writing by Kirby Chien; Editing by Chris Lewis)
S&P DROPS ANALYTICAL COVERAGE OF UCBH HOLDINGS
(Standard & Poor's)
We are dropping analytical coverage on the shares of this California-based regional bank, due to a shift in our investor focus. We had previously carried a hold recommendation on the shares (UCBH 1.27***).
China's first bank in USA?
http://www.chinaeconomicreview.com/dailybriefing/2009_10_09/Minsheng_seek_approval_for_US_bank_buyout.html
This explains shorties having upper hand today.:
"
thestreet
Deadbeat Banks Fail to Pay TARP Dividends
* ByPhilip van Doorn, TheStreet.com Ratings Bank Analyst
* On 9:42 am EDT, Friday October 9, 2009
o
Buzz up! 0
o Print
*
Companies:
o Bank Of America Corporation
o Citigroup, Inc.
o CIT Group, Inc.
NEW YORK (TheStreet) -- Thirty-three banks missed their August dividend payments to the Treasury Department for money granted through the Troubled Asset Relief Program, or TARP.
TARP began almost a year ago with some arm-twisting from the Treasury Secretary at the time, former Goldman Sachs Chief Executive Officer Henry Paulson. He told nine of the largest U.S. banks, including Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Morgan Stanley and Goldman Sachs, they had to accept billions of dollars in support from the government even if they didn't need it.
While many big banks have already repaid TARP in full, it's clear the banks that have deferred their dividend payments are still short of capital.
For the four largest companies missing TARP dividend payments, the total deferred was an estimated $41.6 million. The biggest bank was New York-based CIT Group, which is negotiating with creditors to avoid filing for bankruptcy. CIT received $2.3 billion in government money in December. The bank would represent the first significant loss to TARP.
CIT Group had a ratio of tangible common equity to total assets of 4.17% as of June 30, but many companies on the list had far lower levels of common equity.
Skipped Payments (in Millions of Dollars)
TARP Chart
Source: SNL Financial
First BanCorp of San Juan, Puerto Rico, is the second-biggest company that deferred its August payment, which amounted to $5 million. The company, which had $20 billion in assets as of June 30, lost $78 million in the second quarter, as it suffered the ill effects of the recession and joblessness in Puerto Rico and Florida. While the company's nonperforming-asset ratio climbed to 6.54% as of the end of June, First BanCorp's regulatory capital ratios were relatively strong. The tier 1 leverage ratio was 9.12% and the total risk-based capital ratio was 14.35%, far exceeding the 5% and 10% levels required for most banks to be well-capitalized under regulatory guidelines.
Still, Fitch Ratings downgraded First BanCorp's long-term issuer-default rating Tuesday to "B-" from "BB," expressing concern about the company's tangible common equity ratio, though "regulatory capital levels have remained adequate to date."
California had 11 companies on the list, more than any other state or territory. The largest in the state to miss its August TARP dividend was UCBH Holdings of San Francisco, which put off paying $3.7 million. The company's tangible common equity ratio was just 1.52% and its nonperforming-asset ratio was 6.69%. Its main subsidiary, United Commercial Bank, was the biggest bank included in TheStreet.com's list of undercapitalized banks and thrifts as of June 30.
United Commercial's tier 1 leverage ratio was 4.02% and its total risk-based capital ratio was 7.92% as of June 30. Those ratios need to be 4% and 8% for most banks and thrifts to be considered adequately capitalized.
United Commercial's annualized ratio of net charge-offs (actual loan losses) to average loans for the second quarter was a whopping 20.39%, and the bank's nonperforming-loan ratio still increased to 10.44% as of June 30, up from 8.28% the previous quarter. Loan-loss reserves covered 4.37% of total loans as of June 30, which is normally considered high, but far behind the pace of charge-offs.
United Commercial faces a litany of troubles, with the bank operating under a regulatory cease-and-desist order, and the holding company advising investors through a Securities and Exchange Commission filing that earlier financial reports couldn't be relied upon because of inadequate recognition of loan losses in the fourth quarter of 2008. The SEC is investigating the company's reporting and vultures are circling, with several law firms vying for lead-plaintiff status in a class-action lawsuit.
Sterling Financial of Spokane, Wash., deferred its $3.8 million payment. Sterling, which has $12.4 billion in total assets, deferred interest payments on subordinated notes and preferred stock on Aug. 20, pummeling its share price by 20% to $2.42. The stock closed yesterday at $1.90.
As of June 30, Sterling's tangible common equity ratio was 4.53%, and its regulatory capital ratios appeared relatively strong, with a tier 1 leverage ratio of 8.08% and a total risk-based capital ratio of 12.08%. With the company taking aggressive steps to preserve capital at such a late stage, the action on the common shares has probably already "baked in" another decline in loan quality, which may be confirmed when third-quarter results are released."
Yahoo community sentiment of Bullishness is not there anymo. Was this a one day hit and run operation on part of those f...g flippers? Isnt this supposed to be at least 3 days run considering extensive shorties' cornering ? May be some conspiracy? may be dynamics of acquisition possibility will play out eventually?
What do u folks think?
Moderators dumped without any disclosure and left the board unattended!
moving up now $1.34
UCBH by the Street.com writer
UCBH: Pump Up the Volume
By Robert Holmes 10/07/09 - 10:52 AM EDT
Stock quotes in this article: UCBH
Leave a Comment
SAN FRANCISCO (TheStreet) -- UCBH Holdings (UCBH Quote) shares surged nearly 22% Wednesday on above-average volume after a report that a Chinese bank wants to increase its stake in the company.
Bloomberg reported Wednesday that Minsheng Bank, China's first privately owned bank, plans to seek U.S. regulatory approval to increase its stake in UCBH Holdings to at least 50% from 9.6%, citing two people briefed on the matter.
Minsheng already has an option to raise its stake to about 20%, the report said.
UCBH shares were rising 25 cents, or 21.6%, to $1.41. Earlier, the stock touched an intraday high of $1.47. More than 15.2 million shares changed hands in the first hour of trading Wednesday, compared to the stock's 50-day average daily volume of five million, according to the Nasdaq.
An investor post on an Internet message board argued that if Minsheng were to get 50% of UCBH's common stock, it would imply an influx of approximately $40 million. This, the commenter argued, would be "only a drop in the bucket" to bolster UCBH's capital levels.
In September, UCBH entered into an agreement with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions for a cease and desist order in which it consented to "enhance the strength and stability of the bank and its operations."
The investor post went on to say that no outcome is good for current shareholders, as they face either significant dilution with a need for more capital or an FDIC takeover.
Other message board posters argued that the stock has strong positive technicals with heavy volume, and that it would be a mistake to sell UCBH now with more upside still to go.
Read more about today's high-volume stocks in earlier "Pump Up the Volume" posts.
-- Written by Robert Holmes in New York.
Minsheng / UCBH
FINANCIAL TIMES
Published: October 7 2009 08:38 | Last updated: October 7 2009 16:31
"Two years ago China’s Minsheng Bank blazed a trail by spending about $100m on 4.9 per cent of San Francisco-based UCBH – the first Chinese minority investment into an American bank. Now, having doubled its stake last December, Minsheng is reported to be considering boosting its holding to at least 50 per cent.
This is a smart move, for two reasons. UCBH, the fourth-largest bank based in California, is a TARP beneficiary, under pressure to bolster capital. Chinese companies in various industries have crow-barred their way into overseas cash flows by assisting distressed asset-holders. There is no reason why financial services should sit this out.
Financial TimesMinsheng / UCBH
Published: October 7 2009 08:38 | Last updated: October 7 2009 16:31
Two years ago China’s Minsheng Bank blazed a trail by spending about $100m on 4.9 per cent of San Francisco-based UCBH – the first Chinese minority investment into an American bank. Now, having doubled its stake last December, Minsheng is reported to be considering boosting its holding to at least 50 per cent.
This is a smart move, for two reasons. UCBH, the fourth-largest bank based in California, is a TARP beneficiary, under pressure to bolster capital. Chinese companies in various industries have crow-barred their way into overseas cash flows by assisting distressed asset-holders. There is no reason why financial services should sit this out.
Meanwhile, diversifying revenues away from China makes sense – not just for Beijing-based Minsheng, China’s eighth largest bank by assets. At ICBC, the nation’s number one – which is currently preparing to relieve the Thai government of a stake in Thailand’s ACL Bank – income streams from Indonesia, Macau, South Africa and Canada provided just under 2 per cent of operating income last year.
But it won’t be easy. As a privately-owned bank with three-quarters of its listed shares floated, Minsheng should not ruffle as many regulatory feathers as, say, state-owned ICBC, where 6 per cent of shares are floated. Minsheng already has a seat on the UCBH board, and an option to raise its stake to about 20 per cent. But minority investment is one thing; control another. The last time a Chinese bidder came knocking for a Californian asset – Unocal of El Segundo, pursued by Cnooc four years ago – a political storm erupted.
Meanwhile, diversifying revenues away from China makes sense – not just for Beijing-based Minsheng, China’s eighth largest bank by assets. At ICBC, the nation’s number one – which is currently preparing to relieve the Thai government of a stake in Thailand’s ACL Bank – income streams from Indonesia, Macau, South Africa and Canada provided just under 2 per cent of operating income last year.
But it won’t be easy. As a privately-owned bank with three-quarters of its listed shares floated, Minsheng should not ruffle as many regulatory feathers as, say, state-owned ICBC, where 6 per cent of shares are floated. Minsheng already has a seat on the UCBH board, and an option to raise its stake to about 20 per cent. But minority investment is one thing; control another. The last time a Chinese bidder came knocking for a Californian asset – Unocal of El Segundo, pursued by Cnooc four years ago – a political storm erupted."
I guess everyone forgot about all the lawsuits ! LOL ~
squeezeeeeeeeeeeeeeeeeee
Others have down very well, I just have some shares from the .90's and some cheap options, I need a move to about $2 so those options wake up then I'll be making some bank...
So... nearly 73 % is held by insiders/institutions - 28 % is being shorted - float is ... gone and
... two institutions seem to be adding ...
tick tock shorty is blocked !!!!
Short Interest (Shares Short) 32,917,000
Days To Cover (Short Interest Ratio) 6.5
Short Percent of Float 27.69 %
Shares Float 118,860,000
Total Shares Outstanding 120,436,096
% Owned by Insiders 10.87 %
% Owned by Institutions 61.50 %
Market Cap. $ 139,705,871
Trading Volume - Today 59,694,195
Trading Volume - Average 5,034,900
Trading Volume - Today vs. Average 1185.61 %
OMG you made some major bank!
congrats MWM and UCBH traders
Letter from the bank (10/01/09)
https://www.ibankunited.com/ucb/letterfromdoreen.html
"S&P MAINTAINS HOLD RECOMMENDATION ON SHARES OF UCBH HOLDINGS INC.
(Standard & Poor's)
Shares are up strongly on unconfirmed reports by Bloomberg and Reuters, that China's Minsheng Bank, a 9.6% shareholder, may be looking to increase its stake to 50%. Minsheng already has options, and approvals, for a 20% stake. Though we would view the prospects, if true, of a larger and deep-pocketed owner of such a large stake in UCBH as positive, we are keeping our target price of $1, which is based on a steep discount to peers 0.20X our last tangible book value per share computation, on 12/31/08, which is due to UCBH's failure to yet file Q1 '09 and Q2 '09 SEC 10Qs."
OCT 6 4s PM.. ALSO EXPLAINS SPIKE IN Volume and short fuvkings!
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SAN FRANCISCO (TheStreet) -- Minsheng Bank , China's first privately owned bank, plans to seek U.S. regulatory approval to increase its stake in UCBH Holdings (UCBH Quote) to at least 50% from 9.6%, a report says.
Minsheng already has an option to raise its stake to about 20%, according to Bloomberg, which cited two people briefed on the matter.UCBH, which does business mainly with Chinese communities and American companies seeking business in China, in September entered into an agreement with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions for a cease and desist order in which it consented to "enhance the strength and stability of the bank and its operations."
The bank also said last month that Chairman and CEO Thomas Wu and Chief Operating Officer Ebrahim Shabudin resigned following an independent report that found UCBH deliberately masked loan data.
Minsheng plans to push for greater management control of UCBH and will seek to help rid the lender of some of its nonperforming loans, the people said, Bloomberg reports.
Spokespeople for Minsheng and UCBH declined to comment for Bloomberg.
Shareholders are suing troubled UCBH Holdings Inc. in federal court in San Francisco over the company’s financial reports that they say concealed millions of dollars in loan charge-offs and mounting bad debt.
The parent of San Francisco-based United Commercial Bank (NASDAQ: UCBH) is in the process of restating its financial results for 2008. The bank did not immediately respond Monday to a request for comment on the litigation.
UCBH shares recently traded at 94 cents each. The stock has changed hands for $7.65 per share in the past year.
On Sept. 8, UCBH said Chairman and CEO Thomas Wu resigned from the bank that he had built from a small thrift to a bank targeting the Chinese-American community with branches in major U.S. cities as well as in China.
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