Banks pursue Wall Street talent

China Construction Bank became the fourth Chinese commercial bank allowed to do business in the United States, receiving a permit in December to open a branch in New York City.

The Chinese bank's timing could prove fortuitous, with a lot of recently unemployed finance professionals floating around the city.

"We have been recruiting local people including those laid-off from Wall Street since we established our business here," said a representative from a Chinese bank which opened their New York branch only a few months ago, speaking anonymously and declining to reveal his company's name.

"They have qualifications, experience and local knowledge," he said.

Many financial observers agreed. "Wall Street has innovative energy. New banks can benefit from its talents and experience," said Thomas Ho, a risk management and financial modeling analyst.

"I will definitely consider working for one of these Chinese banks in New York if I get an opportunity," said Chris Sun, a laid-off UBS researcher.

"Once these banks consider starting more derivative products in their business, I will have a better chance getting in given I speak Chinese and have work experience in a US bank," said Sun.

New York State Governor David Paterson said in September that as many as 40,000 jobs on Wall Street could be lost as a result of the New York financial industry's crash.

"This talent will diffuse outside Wall Street to the rest of the world, accelerating financial globalization," said Ho, something he said he expects will become a trend.

A recruitment event in early December 2008 saw representatives from more than 25 financial institutions in Shanghai visit New York, Chicago and London to hire experienced finance professionals .

The recruiters said they preferred "bilingual candidates" with knowledge of international markets and research experience.

China Construction Bank is currently waiting for its business license in New York and declined to comment on whether they were hiring Wall Street layoffs. The bank has 7 trillion yuan in assets as of June 30, 2008, according to its financial reports.

Bank of China set up its New York branch in 1983. Today it has branches in New York and Los Angeles and 85 percent of its US employees were hired locally, said Li Xiaojing, general manager of Bank of China's New York branch.

The other two Chinese commercial banks that operate in the US are the Industrial and Commercial Bank of China (started Aug 2008) and China Merchants Bank (started Oct 2008).