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Jim Trodel
BofA and JPMorgan are putting themselves and U.S. investors at “serious regulatory, financial, and reputational risks” by backing CATL's Hong Kong offering, Republican John Moolenaar, who leads the U.S. House of Representatives Special Committee on the Communist Party of China, expressed in a letter to the banks' CEOs.
The letters highlight that CATL was banned by the Pentagon in January due to alleged connections to the Chinese military. Furthermore, the appeal notes that U.S. President Donald Trump's "America First" investment policy memorandum is intended to discourage Wall Street from engaging U.S. retail investors in CATL's offering.
According to Moolenaar's letter, if Bank of America and JPMorgan do not promptly agree to abandon the deal, the committee will mandate them to respond thoroughly to 21 questions concerning risk evaluation, U.S. compliance standards, and possible violations. Representatives from BofA and JPMorgan chose not to provide comments.
Bloomberg notes that while the Pentagon's blacklist does not directly impose specific sanctions on companies, it acts as a deterrent for others to engage in business with those included on the list. CATL, a key battery supplier for Tesla, is opposing its addition to the list.
source: bloomberg.com
The letters highlight that CATL was banned by the Pentagon in January due to alleged connections to the Chinese military. Furthermore, the appeal notes that U.S. President Donald Trump's "America First" investment policy memorandum is intended to discourage Wall Street from engaging U.S. retail investors in CATL's offering.
According to Moolenaar's letter, if Bank of America and JPMorgan do not promptly agree to abandon the deal, the committee will mandate them to respond thoroughly to 21 questions concerning risk evaluation, U.S. compliance standards, and possible violations. Representatives from BofA and JPMorgan chose not to provide comments.
Bloomberg notes that while the Pentagon's blacklist does not directly impose specific sanctions on companies, it acts as a deterrent for others to engage in business with those included on the list. CATL, a key battery supplier for Tesla, is opposing its addition to the list.
source: bloomberg.com
