For those who thought HSBC paid too much for a predatory lender when the bank bought Household International, rumors about HSBC and UBS drive home the point. The long-running rumor about HSBC mulling a takeover of UBS resurfaced today, pushing the Swiss banking major’s share price higher by over four per cent, even as that of HSBC fell into the red. So a predatory lender for $14 billion, or UBS? UBS currently has a market value of more than $42 billion and the rumored bid marks a huge premium over the prevailing share price of the company. No stigma, no predatory lending, no high interest rate label – just another takeover.

Let us ask the obvious question. If subprime started in the United States, and HSBC plc, HSBC USA, and HSBC Finance failed to put on the brakes soon enough, did HSBC manipulate UBS losses and UBS stock in any way? Did HSBC USA and HSBC Finance poison other banks with CDO’s in any way, shape, or form? One must ask if the United States mortgage crisis was simply used by non-US based banks as a vehicle to manipulate a detriorating situation around the world. It was a simple strategy:

Sell anything and everything mortgage-related without fear
Sell the associated paper to anybody who would buy
Spread the wealth around the world
Announce that the paper is going bad
Play the role of innocent victim
Finally, stand in the wings and wait for the funeral dirge to start

Popularity: 4% [?]

No related posts.