Financial services companies globally have had more than $195 billion in asset writedowns and credit losses this year stemming from the collapse of the U.S. subprime mortgage market. Merrill Lynch’s $24.5 billion of subprime-mortgage-related writedowns and losses are the highest of any bank or securities house, according to data compiled by Bloomberg. Losses may rise should default protection that the third-largest U.S. securities firm bought from companies such as XL, a unit of Security Capital Assurance Ltd., fail to pay off.
Archive for » March, 2008 «
We deviate from our regular HSBC posts to show our readers how UK banks avoid refunding customers’ unfair bank charges. Even though UK regulators said refunds should be issued, customers demanding such refunds are met with stonewalling and refusals. High Street giant Lloyds TSB, which has been accused of overcharging customers £300 million a year, has issued staff with guidelines on how to deal with complaints. The “problem” started when somebody with a conscience leaked the secret manual to the press.
Category: 2007 HSBC
One Comment
London newspapers are reporting that HSBC is examining a sale of its train-leasing division. Yesterday HSBC was examining the possibility of expanding into Africa. Before that they discussed a possible sale of HSBC Finance in the United States. While selling non-core assets like train leasing might be a good idea one suspects that HSBC needs some focus. Whether that focus is provided by upper management or rogue investors remains to be seen.
Category: 2007 HSBC
Leave a Comment
Cassandra was the young and beautiful daughter of Priam, the last king of Troy. Apollo bestowed upon Cassandra a special gift—the ability to see the future. The problem with the gift was she could see the future but could not do anything about it. Analysts and economists said for many years that there is a direct relationship between manufactured wealth and the inevitable resulting crash. That is not Cassandra - just basic simple economics 101. Then from the ashes of Household International rose HSBC, or specifically HSBC Finance. Lacking the gift of Cassandra and falsly relying on due dilligence and shaky risk management HSBC thought their bank to own the world.
Category: 2007 HSBC
Leave a Comment
On March 14th Bloomberg was reporting HSBC writedowns and losses as follows:
Writedowns: $3 Billion
Credit Losses: $9.4 Billion
Total: $12.4 Billion
Category: 2007 HSBC
Leave a Comment
