HSBC Holdings PLC isn’t interested in buying Morgan Stanley, a person familiar with the bank said Friday. “HSBC has made clear in the past that buying an investment bank is not on its agenda,” the person added. “HSBC feels Morgan Stanley is not worth pursuing.” It appears as though HSBC is not interested in anything in the United States, although rumors involved HSBC interest in just about everything. Wachovia, Lehman, Morgan Stanley — you name it, and HSBC’s interest has been discussed. Has HSBC turned its back on America, or is it possible that HSBC would receive so much opposition and regulatory scrutiny that the bank doesn’t want to take the risk?
There will be an “open comment” period for any acquisition, just like there was when HSBC bought Household International. Many groups voiced opposition to the Household purchase by HSBC, citing pages and pages of research, reasons, and material. Yes HSBC has done a lot of good things, but Household and HSBC Finance Corp is not one of them.
Without Household International HSBC would have been more profitable. One more predator would have been eliminated from the landscape of America. A model for subprime would have been eliminated. Metris could have expanded, or at least would not associated with deliberately processing payments as bogus late payments. HSBC could have eliminated a black eye, gaining respectability that was lost since 2003.
Who funded subprime mortgage brokers and companies? Why is HSBC USA structured with holding companies within holding companies? Why were two HSBC holding companies discovered, while previously undisclosed to the SEC? How much of the “Household Model” was exported overseas, thus priming other countries for a subprime event? Either HSBC is not interested in the United States, or HSBC does not want the risk of deeper investigations. As HSBC attempts to expand their account base and branch footprint Americans should remember the past, present, and future.
Related posts:
