Aug. 6, 2013, 3:23 AM
- HSBC (HBC) faces having to pay $1.6B in a lawsuit from the Federal Housing Finance Agency over soured mortgage bonds that the bank sold to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB). The bank made the disclosure yesterday.
- The figure is well above the $900M that analysts at Credit Suisse had estimated.
- In total the FHFA has sued 18 banks over mortgage bonds; should HSBC's calculations for its liabilities be applied to some of the defendants with the largest exposure, including Bank of America (BAC), JPMorgan (JPM) and RBS (RBS), they would have to pay over $7B each. Should these banks make payments in proportion with a recent UBS deal, the bill would above $4B.
Aug. 5, 2013, 9:09 AM
Aug. 5, 2013, 5:01 AM
- HSBC's (HBC) underlying pretax profit +47% to $13.1B, helped by lower loan-impairment charges and operating costs.
- Attributable profit +23% to $10B.
- Net interest income -8% to $17.8B.
- Western economic growth continued to be tepid while growth in China and the rest of Asia stuttered; regulatory reforms added to costs.
- Impairment charges and credit risk provisions -$1.7B to $3.1B.
- Grew revenues in key areas: Financing & Equity Capital Markets, Credit businesses, residential mortgages in the U.K. and Hong Kong, and from collaboration between global businesses.
- Return on equity rises to 12% from 10.5% last year.
- Underlying expenses -8%, helped by $800M of cost savings across all regions, taking the annualized total to $4.1B since the start of 2011.
- Core tier 1 ratio 12.7%, common equity tier 1 ratio 10.1%.
- Total assets -2% since December to $2.645T.
- Declares second interim dividend for 2013 of $0.10 a share.
- Shares -3%. (PR)
Aug. 5, 2013, 4:44 AM
Jul. 19, 2013, 7:21 AMStay away from the Lloyds (LYG) "love-in" warns Citi after the stock's near 50% move in the last 3 months. Instead, check out Barclays (BCS) where concern over the bank's leverage ratios is overdone. There's also the international U.K banks - HSBC (HBC) and Standard Chartered (SCBFF.PK) - where margin pressure is starting to ease and pound weakness vs. the dollar is "a translational positive." | Jul. 19, 2013, 7:21 AM
Jul. 12, 2013, 3:07 PM
The usual suspects in the banking fraternity are the subject of another class-action suit over price-fixing in the CDS market, with the plaintiffs in this case being 4 Danish pension funds. The case was filed in federal court in Illinois, the same locale as a similar complaint logged in May by a labor union. Across the pond, the EU this month filed their own charges. Banks named: BAC, BCS, C, CS, DB, GS, HBC, JPM, MS, RBS, UBS, BNPQY.PK.| Jul. 12, 2013, 3:07 PM | 5 Comments
Jul. 8, 2013, 5:06 AM
U.K. Finance Minister George Osborne will reportedly express his support today for the overwhelming majority of recommendations of a parliamentary panel to raise standards at the country's banks. The proposals include making it a crime to manage a bank recklessly and easier to claw back bonuses, although Osborne won't back a plan for tighter limits on leverage ratios.| Jul. 8, 2013, 5:06 AM | 1 Comment
Jul. 5, 2013, 5:02 AMHSBC (HBC) intends to shut its retail banking and wealth management operations in South Korea from Monday as the firm continues its worldwide streamlining. However, HSBC will leave its global banking and markets business, which are aimed at corporate clients, in place. Since May 2011, HSBC has closed or offloaded 52 businesses. | Jul. 5, 2013, 5:02 AM
Jul. 3, 2013, 3:29 AM
U.S. District Judge John Gleeson has approved HSBC's (HBC) record $1.92B deal with authorities to settle charges that the bank illegally carried out financial transactions for Mexican and Colombian drug cartels, money launderers and other wrongdoers. Gleeson authorized the agreement despite "heavy public criticism" that HSBC is being spared criminal charges under a "deferred-prosecution agreement."| Jul. 3, 2013, 3:29 AM | 1 Comment
Jul. 1, 2013, 7:14 AMThe EU logs antitrust charges against Markit, the ISDA and 13 banks for blocking exchanges in the credit derivatives business. "The banks acted collectively to shut out exchanges from the market because they feared that exchange trading would have reduced their revenues." Banks charged: BAC, BCS, C, MS, CS, DB, GS, HBC, JPM, RBS, UBS, BNPQY.PK. | Jul. 1, 2013, 7:14 AM | 1 Comment
Jun. 26, 2013, 7:36 AM
HSBC (HBC) and Citigroup (C) could soon be doing more business in China, winning Beijing's approval to sell domestic mutual funds in the country. Attracting more money into the languishing stock market is a priority for the country's leaders who only this February allowed the sales of mutual funds by domestic brokerages and insurers.| Jun. 26, 2013, 7:36 AM
Jun. 20, 2013, 1:12 PM
JPMorgan (JPM) and HSBC (HBC) cannot be sued for fraud and $30B by Bernie Madoff's liquidator - Irving Picard - because Picard himself is the trustee for Madoff's fraudulent enterprise, rules a federal appeals court. "Picard stands in the shoes of (Madoff) and may not assert claims against third parties for participating in a fraud that (Madoff) orchestrated."| Jun. 20, 2013, 1:12 PM | 1 Comment
Jun. 20, 2013, 4:47 AM
The British banking sector needs to formulate plans to raise a combined £13.4B in order to meet Basel III capital requirements, the Bank of England's Prudential Regulation Authority said today. Banks had a total shortfall of £27.1B at the end of 2012 and have already drawn up programs to raise £13.7B, although some of the proposals need regulatory approval. RBS's (RBS) shortfall was £13.6B, Lloyds' (LYG) was £8.6B and Barclays (BCS) was £3B. However, the U.K. units of Banco Santander (SAN), HSBC (HBC) and Standard Chartered (SCBFF.PK) were in surplus. (PR)| Jun. 20, 2013, 4:47 AM
Jun. 18, 2013, 7:28 AM
Jun. 9, 2013, 6:05 AM
The U.K.'s Parliamentary Commission on Banking Standards will reportedly debate a 600-page report that it has put together tomorrow and on Tuesday, with probable topics of discussion including splitting RBS (RBS) up into "good" and "bad" banks, a lack of competition, excessive pay and inadequate regulation. One of the problems, says an official, is that the banks are too big and complex for effective governance.| Jun. 9, 2013, 6:05 AM | 4 Comments
Jun. 6, 2013, 4:14 PMHSBC (HBC) and Standard Chartered (SCBFF.PK) are most at risk of an emerging market selloff, says JPMorgan, owing to their high exposure to ... emerging markets. In a report titled - "Fed Tapering: Who is afraid of EM selloff? We are!" - the bank says EM is going through the most disruptive period since Lehman and warns of a "material slowdown" in EM fixed-income revenues and "drying up" volumes. Also worth keeping an eye on are European banks with heavy LatAM exposure - SAN and BBVA. | Jun. 6, 2013, 4:14 PM