Former Sen. Specter: Nasdaq discriminates against the Chinese

Former U.S. Sen. Arlen Specter, who once described Chinese business practices as international banditry, is accusing Nasdaq of racially discriminating against Chinese companies trying to raise money on that stock market.

Specter, 82, of Philadelphia filed a lawsuit challenging Nasdaq’s decision in December to remove Chinese wind-tower maker CleanTech Innovations Inc. from the stock exchange. Nasdaq, in its delisting notice, cited concern about CleanTech’s close association with controversial Wall Street deal maker Benjamin Wey, who the stock exchange’s senior vice president labeled “notorious” for his past stock promotions.

Wey’s firm, New York Global Group Inc., specializes in raising money for Chinese companies through complicated transactions called “reverse mergers” in which Chinese firms take over American shell companies.