Illustration by Carolina Moscoso
The Big Take
Wall Street’s China Plans in Tatters After Years of Setbacks
Major banks are scaling back investments and cutting jobs as they rethink growth strategies.
It was mid-December, and representatives for Wall Street’s biggest banks were meeting with US Treasury officials to better understand how their clients can comply with new rules for investing in Chinese companies that pose potential national security risks.
Bankers from Goldman Sachs, Morgan Stanley and others left the meeting confused, with more questions than answers about which deals qualify and what reporting is required to stay within the complex guidelines, according to people familiar with the talks, who spoke on condition they not be identified.