when Lehman Brothers disappeared from the landscape our comment that Lehman was lying to the public was confirmed. Now HSBC wants to fill the void left by Lehman Brothers. A word of caution is called for. “Don’t lie to anyone in press releases.”
HSBC Holdings Plc, Europe’s biggest bank, is seeking to expand its role as a broker to hedge funds after last year’s collapse of Lehman Brothers Holdings Inc.
“It’s a significant opportunity for a new revenue stream,” said Stuart Gulliver, HSBC’s investment banking chief, at a Nomura Holdings Inc. conference in London today. “We’ve seen a number of hedge funds moving their accounts to HSBC because their main concern is getting their money back.”
About 700 clients of Lehman’s European division, including MKM Longboat Capital Advisors LLP and GLG Partners Inc., lost control of their assets when the parent company filed for bankruptcy. PricewaterhouseCoopers LLP, Lehman’s U.K. administrator, said last month it may be a decade before creditors receive all of the $9 billion they are owed.
As matters fell apart for Lehman and many others in 2007, Lehman decided to get in front of subprime issues. Making a public statement that very few believed Lehman said they had no involvement with subprime.
Immediately after hearing this bunk on The Bloomberg Channel I looked at my wife and said “Lehman is lying.” History tells the rest of the story, and Lehman was not worthy of a bailout.
Our 29-paqe document “The Collapse of HSBC Finance” tells of Lehman Brothers’ involvement with subprime since the very beginning. You can get it for free on this website.
Now that HSBC Finance has collapsed and Lehman in a penny stock we find it ironic that HSBC wants to fill the void.
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