Household HSBC Watch

This is a follow-up on to one of our articles which is going as we predicted. HSBC is believed to have approached potential buyers for its skyscraper head office in London’s Canary Wharf amid fears it might have to repossess the building from the Spanish property group that paid a record £1.1bn for it last year. IF HSBC is willing to repossess its own building rather than providing additional financing there is little or no hope for the basic, average homeowner. From now on HSBC will say “business is business - just look at our Canary Wharf Headquarters.”

Metrovacesa, Spain’s largest property company, is trying to refinance the £810m of short-term debt it took out with HSBC to buy 8 Canada Square, in what was Britain’s biggest single building sale. If Metrovacesa, controlled by the Sanahuja family, cannot refinance, HSBC may take back possession of the 42-story tower. Metrovacesa tried to refinance but claimed the finance market has dried up. We suppose HSBC also said “sorry, but we don’t have any money either.” There is a huge profit is selling things more than once, following a repossession. Just look at HSBC Auto Finance as an example.