Why have HSBC not been mentioned when talking bank crisis?
Discussion
Since the banking situation started I believe I have heard news or headlines about most of the major banks in the UK whether this is a take over, merger or national support.
I have not heard any news about HSBC. Why is this?
Do HSBC operate in a different way to the others banks?
Thanks in advance for the clarity
I have not heard any news about HSBC. Why is this?
Do HSBC operate in a different way to the others banks?
Thanks in advance for the clarity
As a Bank with much of its business in Asia, it is much less affected.
Asia has a smaller proportion of toxic debt compared to the West.
HSBC is also considerably more diversified.
HSBC, together with the Japanese banks are seen as pretty safe havens compared to Western banks.
The CDS spreads ( basically insurances on the risk of a bank defaulting, which are actively traded ) for HSBC are among the lowest of any bank. Which is a good thing and reflects the widely held view that HSBC are fine.
Ironically, a little while ago HSBC were getting flack for not being more aggressive like Barclays ...
How times have changed.
Asia has a smaller proportion of toxic debt compared to the West.
HSBC is also considerably more diversified.
HSBC, together with the Japanese banks are seen as pretty safe havens compared to Western banks.
The CDS spreads ( basically insurances on the risk of a bank defaulting, which are actively traded ) for HSBC are among the lowest of any bank. Which is a good thing and reflects the widely held view that HSBC are fine.
Ironically, a little while ago HSBC were getting flack for not being more aggressive like Barclays ...
How times have changed.
they are a massive lender, so simply not lending to anyone at the minute... plus they had writedowns of about 10.3bio and profits this year of about 23.6 bio.... so are pretty solid at the minute, hence when all other banks are holding their hands out they just said no thanks we have got plenty of cash....
The HSBC you are talking about globally is The Hongkong and Shanghai Banking Corporation Limited setup by a scot.
When you are talking about HSBC in the UK, its a simple rename of Midlands, so when saying it was only worth half of the 4 major banks a few years ago, you are right if you are talking about the old midlands bank, but now its worth more than the 4 major, well no.... HSBC has always been huge, its just it really didnt come to the UK til it took over Midlands in 98 (circa) and changed it to HSBC so that noone associated it with Midlands anymore.
As to being all over the world, yes it is... and the reason profits are good but not amazing, is because there is always something happening somewhere that means that HSBC has to sit and weather the storm, but because its not stupid enough to have all it eggs in one country like most other banks, it will never be affected in the same way that the other banks are now being taken down.
From an Ex-HSBC employee, who had all the above brain washed into my head.
When you are talking about HSBC in the UK, its a simple rename of Midlands, so when saying it was only worth half of the 4 major banks a few years ago, you are right if you are talking about the old midlands bank, but now its worth more than the 4 major, well no.... HSBC has always been huge, its just it really didnt come to the UK til it took over Midlands in 98 (circa) and changed it to HSBC so that noone associated it with Midlands anymore.
As to being all over the world, yes it is... and the reason profits are good but not amazing, is because there is always something happening somewhere that means that HSBC has to sit and weather the storm, but because its not stupid enough to have all it eggs in one country like most other banks, it will never be affected in the same way that the other banks are now being taken down.
From an Ex-HSBC employee, who had all the above brain washed into my head.
Clarifying a few points. HSBC took over UK Midland Bank much earlier than 1998-in fact IIRC about 1991/2. It was not so widely known as Midland was kept as the brand until about 1998. In fact they effectively bailed out Midland under the old Sir Kit McMahon or similar name after they'd dropped a pretty big bullock buying an American outfit & "overlooked" certain bad debts on their books.
Everything "Midland" then became re-branded to fit global image.
The origins were (as correctly stated above)indeed in the Far East but also as stated started by some "gentlemen" of Scottish origin who worked for the P & O Shipping Co (Peninsular & Orient at the time) with funds , I believe deposited from other "gentlemen" investors.
They have since grown phenomenally, but carefully and have been (may still be) one of the top 3 banks worldwide but are a British Bank with UK HQ ,now at Canary Wharf, previously in the old Midland HQ at Poultry in City.
The public image "on the street" is that it is Chinese/Japanese , or at best "something Far East"-owned !!
How wrong.
When I worked there the upper level chaps seemed to have their heads screwed on as business/bankers types- very "focussed" & yes they have plenty of cash. I just hope even their's is enough.
Everything "Midland" then became re-branded to fit global image.
The origins were (as correctly stated above)indeed in the Far East but also as stated started by some "gentlemen" of Scottish origin who worked for the P & O Shipping Co (Peninsular & Orient at the time) with funds , I believe deposited from other "gentlemen" investors.
They have since grown phenomenally, but carefully and have been (may still be) one of the top 3 banks worldwide but are a British Bank with UK HQ ,now at Canary Wharf, previously in the old Midland HQ at Poultry in City.
The public image "on the street" is that it is Chinese/Japanese , or at best "something Far East"-owned !!
How wrong.
When I worked there the upper level chaps seemed to have their heads screwed on as business/bankers types- very "focussed" & yes they have plenty of cash. I just hope even their's is enough.
sprinter885 said:
Clarifying a few points. HSBC took over UK Midland Bank much earlier than 1998-in fact IIRC about 1991/2. It was not so widely known as Midland was kept as the brand until about 1998. In fact they effectively bailed out Midland under the old Sir Kit McMahon or similar name after they'd dropped a pretty big bullock buying an American outfit & "overlooked" certain bad debts on their books.
Ah is that the Household incident that they bought because of their credit card system that HSBC desperately needed and then found that they have been the thorn in their side ever since. I was on the Plato/HCC system when it was canned with regards to bringing in the system from Household.Wondered why they kept them ever since, but then again i dont remember the last time that sold an asset.
ahdguy said:
Not british ? Really? http://www.hsbc.com/1/2/about-hsbc
Did you see the bit at the end of the page?hsbc website said:
Group History
The HSBC Group has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history which is rich in variety and achievement. The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe.
The HSBC Group has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history which is rich in variety and achievement. The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe.
Nope- Household was a more recent acquisition and although there was criticism about them buying Household (owners of coincidentally-named HFC Bank & Beneficial Bank in UK) it was later recognised that it gave HSBC access to some 50million "new" customers as I recall and contributed significantly to Group Worldide profits. (or so the blurb went!)
The " American" deal referred to earlier was another bank & I'm having the damndest trouble remembering it's name-it'll come to me but probably not important.
The " American" deal referred to earlier was another bank & I'm having the damndest trouble remembering it's name-it'll come to me but probably not important.
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