HSBC came under pressure to let Household, its American sub-prime bank, go bankrupt yesterday, in order to avoid an expensive rights issue or government bailout. The proposal was dismissed by HSBC. Knight Vinke, the activist investor, told The Times last night that HSBC should refuse to pay the bondholders that fund Household’s business, which it estimated would save the bank an estimated $35 billion. (£23.6 billion). Here is the complete article.
Archive for » January, 2009 «
Category: Tom Detelich
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Many people are asking when HSBC is going to report. The answer – the full year 2008 HSBC Holdings plc earnings release will be Mar 2, 2009 at 7:00AM EST. It will be interesting, and plenty can happen between now and then. Just look at RBS (Royal Bank of Scotland) with a drop of 69 percent on Tuesday January 20, 2009. Here is a link to key developments for HSBC ADR. There is nothing exciting there.
Category: General News
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Whitehall sources said that they had discovered that some major UK lenders – including RBS, HSBC and Barclays – have had only 20 per cent of their balance sheets made up of “traditional” loans to UK households and firms. Meanwhile, up to 80 percent is tied up in loans to foreign nationals and companies, bond issues and other investments. As HSBC continues to say they will not take money from the government one must ask why. In the United States it is clear to almost everyone that HSBC does not want anyone to look at their books. Does the same hold true in the UK?
Category: General News
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Citigroup is restucturing and in doing so may teach HSBC a lesson. Citigroup Inc. said it is restructuring itself so that consumers or businesses who do banking with them are in one company, to be called Citicorp. Customers involved in other types of lending or finance will be in Citi Holdings. With its restructuring, Citi concedes it is all but impossible to transform the latter into the former. Has HSBC learned that lesson with the bank’s purchase of Household International? Along the same line we wonder if there is a clear correlation between subprime and near-prime lending and blue blooded bankers.
Category: Subprime
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HSBC fell 14% in pre-market trade Tuesday following losses by UK banks. Hong Kong’ stock index dropped almost 3 percent Tuesday as HSBC Holdings PLC led declines in banking shares. HSBC continued its downward slide, falling 7.7 percent to 57.55 Hong Kong dollars. Real-Time ECN quotes from BATS Trading, sampled at 7:25 AM central standard time on Tuesday morning, showed HSBC’s last trade at 33.51, while HSBC was at 39.95 when the market closed last Friday. (The market was closed on Monday to observe the Martin Luther King holiday.)
Category: General News
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