Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

HSBC Has A Valuable Core Franchise, But A Lot Of Work To Do

The giant global franchises of Standard Chartered (OTCPK:SCBFF), Citigroup (NYSE:C), Deutsche Bank (NYSE:DB), and HSBC (NYSE:HSBC) definitely didn't live up to the notion that a global footprint would insulate them in tougher times. In the particular case of HSBC, it got to a point where some started asking whether it was actually a good global bank or just a very good Hong Kong bank with a lot of foreign market albatrosses dragging it down.

The truth, as is often the case, is somewhere between. HSBC certainly made some big mistakes in markets like the U.S., and the China operation has its challenges today, but Hong Kong continues to be exceptionally profitable and...

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