China's Minsheng Seeks Control of UCBH

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.

-- Reported by Joseph Woelfel in New York .

Follow TheStreet.com on Twitter and become a fan on Facebook.