The US investment bank Goldman Sachs has signed a landmark deal with the Industrial & Commercial Bank of China (ICBC) to form a strategic partnership to dispose of non-performing loans. Hank Paulson, chairman of Goldman Sachs, said that the venture would mark the start of a longterm
relationship with the bank. The joint venture intends to take on bad loans from ICBC worth Yn8bn-10bn, but no details were provided on how the portfolio would be valued or the expected rate of return.
This venture is the first of its kind between a foreign institution and a Chinese bank, though both Goldman Sachs and a consortium led by Morgan Stanley have formed joint ventures with Huarong, an asset management company created to dispose of a tranche of ICBC's bad debts.
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