HSBC most likely is exposed to failed Lehman Brothers said Forbes recently. “HSBC especially, is “likely exposed” because of its active off-balance-sheet activities in the credit derivatives market and exposure to the United States and United Kingdom, said Daniel Tabbush, a regional banking analyst for CLSA.”
Things have been quiet at HSBC. With each investment bank or major lender in trouble, HSBC was mentioned as a possible buyer. HSBC bought nothing. HSBC is consolidating and combining to save money, but made no major moves. Silence and lack of activity seems to speak volumes about HSBC’s actual worldwide plans.
Recently a major information technology group examined HSBC computer failures, detailing what went wrong and how delays in recapturing information seemed unacceptable. Attempts to contact HSBC regarding the issues were unsucessful. Giving HSBC the opportunity to speak to the matter or comment on lessons learned, the group said instead that “calls to HSBC were not returned.” More silence. Perhaps the future will tell us why.
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