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HSBC Holdings PLC (HSBC)

  • Wed, Jun. 17, 11:30 AM
    • While the OCC lifted consent orders against Bank of America (NYSE:BAC), Citibank (NYSE:C), and PNC Financial (NYSE:PNC) after finding unsafe and unsound mortgage-servicing and foreclosure practices back in 2011, Wells Fargo (NYSE:WFC) is part of a group facing new restrictions.
    • Among other items, report Deon Roberts and Rick Rothacker, Wells Fargo is banned from entering new contacts to perform mortgage servicing for other lenders. The bank may still make and service new mortgages.
    • OCC Deputy Controller Morris Morgan expects corrections from the group to be made in months, not years. “We have reserved the ability to take additional action against the six, and we plan to do so based on how quickly and effectively they remediate the remaining actions."
    • The other five: JPMorgan (NYSE:JPM), HSBC Bank USA (NYSE:HSBC), Santander Bank (NYSE:SAN), U.S. Bank (NYSE:USB), and EverBank (NYSE:EVER)
    | Wed, Jun. 17, 11:30 AM | 12 Comments
  • Tue, Jun. 16, 2:25 AM
    • HSBC (NYSE:HSBC) and JPMorgan (NYSE:JPM) are in discussions to relocate parts of their businesses to the Luxembourg as they weigh tougher rules for conducting business outside of the eurozone and the possibility of a British exit from the EU, The Times reports.
    • According to the International Consortium of Investigative Journalists, more than 300 companies, including PepsiCo, AIG and Deutsche Bank, have already secured secret deals from Luxembourg to slash their tax bills.
    | Tue, Jun. 16, 2:25 AM | Comment!
  • Tue, Jun. 9, 7:35 AM
    • The money-losing unit (for HSBC at least) is expected to sell for $3.2B-$4B, according to Bloomberg. Helping making Bradesco (NYSE:BBD) a more likely buyer than a foreign bank like Santander are the ease with which it could win approval and integrate the business.
    • A purchase would add the country's 7th-largest bank to Bradesco's operation, but wouldn't be enough to push it past Itau Unibanco as Brazil's largest. Itau also made an offer for the HSBC operation, but - already being the nation's largest bank - had less interest than Bradesco.
    • Previously: HSBC to cut thousands of jobs, slash billions from costs (June 9)
    | Tue, Jun. 9, 7:35 AM | 1 Comment
  • Tue, Jun. 9, 1:55 AM
    • HSBC will cut costs by as much as $5B within two years, selling its units in Brazil and Turkey and laying off as many as 50K staff, Europe's biggest bank told investors in a much-anticipated update.
    • In a statement to the Hong Kong Stock Exchange, HSBC said it would also shrink its risk-weighted assets by about $290B, including cutting its global banking and markets risk-weighted assets to less than a third of the group's assets.
    • The bank will also target a ROE of more than 10% by 2017, down from a previous goal of 12%-15% by 2016.
    • HSBC -1.2% premarket
    | Tue, Jun. 9, 1:55 AM | 9 Comments
  • Mon, Jun. 8, 1:01 PM
    • Marzio Perrelli joined HSBC's Italian subsidiary in 2004 and became its CEO in 2008.
    • The internal investigation ordered by HSBC Chief Legal Officer Stuart Levey is connected to a widely-reported corporate scandal involving the Generali insurance group, reports The Guardian, and Italian police are understood to have visited HSBC's offices in connection with their own probe.
    • It's another issue for bank CEO Stuart Gulliver who tomorrow is set to present his plans to simplify and withdraw from a number of operations globally, and also to lay out framework for deciding whether to pull its HQ from London.
    | Mon, Jun. 8, 1:01 PM | 1 Comment
  • Tue, Jun. 2, 11:12 AM
    • Itau Unibanco (NYSE:ITUB), Banco Bradesco (NYSE:BBD), and Banco Santander Brasil (NYSE:BSBR) have put in bids for HSBC's Brazilian operation, reports the WSJ, noting the process is still at an early stage and more bids could come in the next few weeks.
    • A sale could come as soon as August, according to the Journal's sources.
    • The unit is likely worth between $3.12B and $4.37B, according to a Deutsche analyst.
    • Previously: HSBC confirms interest in selling Brazilian unit (May 22)
    | Tue, Jun. 2, 11:12 AM | 1 Comment
  • Tue, Jun. 2, 5:46 AM
    • HSBC (NYSE:HSBC) has been ordered to face three U.S. lawsuits accusing it of breaching its duties as a trustee overseeing residential mortgage-backed securities that suffered more than $34B of losses during the financial crisis.
    • The news follows a report yesterday which stated that HSBC is planning to announce massive layoffs next week. According to Sky News, the job cuts will total 10K-20K.
    | Tue, Jun. 2, 5:46 AM | 2 Comments
  • Mon, Jun. 1, 2:58 PM
    • The precise number of job cuts set to be announced by HSBC CEO Stuart Gulliver is unclear, reports Sky News, but is likely to be in the 10K-20K range. Headcount as of year-end was 258K.
    • Any job cuts do not include the impact of the sales of the bank's Brazilian and Turkish units, both of which are reportedly on the block.
    • Also on investors' minds as Gulliver updates next week how the review for moving the bank's HQ out of the U.K. is going.
    | Mon, Jun. 1, 2:58 PM | Comment!
  • Thu, May 28, 2:30 AM
    • The world's most popular sport was plunged into turmoil on Wednesday as U.S. authorities announced charges against nine FIFA officials and five sports executives, alleging they were part of a scheme in which more than $150M in bribes were paid in exchange for the commercial rights to soccer tournaments.
    • The bribes were reportedly paid using accounts at major global banks, raising the prospect that Wall Street could be in the spotlight again over its involvement in yet another scandal. Banks involved: JPMorgan (NYSE:JPM), Citigroup (NYSE:C), HSBC, BofA (NYSE:BAC), UBS and Julius Baer (OTCPK:JBAXY).
    • Nike, which also might be in the hot seat, said it would cooperate with authorities.
    | Thu, May 28, 2:30 AM | 145 Comments
  • Fri, May 22, 7:44 AM
    • HSBC CEO Stuart Gulliver in February said the bank's four problem businesses - Brazil, Mexico, Turkey, and the U.S. - needed to be improved or sold, thus setting the stage for the rumors.
    • Reuters reports sales processes are underway in Brazil and Turkey, but the U.S. and Mexican operations are likely to be kept. Both are sizable businesses, but not among the top five lenders in either country.
    • A preferred bidder for the Brazil unit could come next month as CEO Gulliver takes part in a strategy day on June 9.
    • Source: Reuters
    • Previously: Santander Brasil mulls purchase of HSBC's Brazil unit (May 19)
    | Fri, May 22, 7:44 AM | Comment!
  • Wed, May 20, 3:24 AM
    • HSBC (NYSE:HSBC) has now become one of the biggest global banks to say it will begin charging clients on deposits in a basket of European currencies to prevent its profit margins from being crushed in a record low-interest rate environment.
    • The unusual steps come after the ECB became the first big central bank to announce a negative deposit rate - in effect a penalty on banks parking their surplus cash - last year.
    | Wed, May 20, 3:24 AM | Comment!
  • Tue, May 19, 12:44 PM
    • "We haven't made an offer, we haven't even opened a data room for this operation," says Banco Santander Brasil (NYSE:BSBR) CEO Jesus Zabalza, cautioning things are still in an "initial process."
    • It's been previously reported that HSBC has hired advisers to pitch a sale of a sizable piece of its Brazilian unit - the 7th largest bank in Brazil with a 2.7% market share of assets.
    • Source: WSJ
    • Previously: Report: HSBC to receive bids for Brazil unit by June (May 14)
    | Tue, May 19, 12:44 PM | Comment!
  • Thu, May 14, 7:46 AM
    • The company could select its preferred bidder as early as next month, reports Reuters, with the sale expected to be finalized by August.
    • HSBC Bank Brasil Banco Multiplo might go for no more than book value, or $3.34B, as the operation currently isn't profitable.
    • Brazil banking giants Banco Bradesco (NYSE:BBD), Banco Santander Brasil (NYSE:BSBR), and Grupo BTG Pactual are all natural bidders, and Canada's Scotiabank had shown early interest, but it appears to have fizzled out. China's Industrial Bank is also considering a bid, according to Reuters' sources.
    | Thu, May 14, 7:46 AM | Comment!
  • Tue, May 12, 12:37 PM
    • "There would be a massive impact across London if a bank the size of HSBC left," says Davide Serra, founder of hedge fund Algebris, and who has advised the government on its holdings of Lloyds (NYSE:LYG) and RBS. "We are talking 10% of London's GDP, if you factor things like personnel moving."
    • What has HSBC along with Standard Chartered (OTCPK:SCBFF) considering pulling their HQ out of the U.K. is the country's bank levy - an annual tax on U.K. banks of 0.21% of assets (foreign banks pay that amount only on their U.K. liabilities). Serra: “The bank levy is totally unsustainable. If the U.K. takes 25% of U.K. banks’ profitability, no bank will want to be domiciled here. It is a total disaster for the U.K.”
    • Algebris' long/short equity strategy is ahead 27% YTD, while its credit strategy is up 5.14%. Also among its bank holdings is the equity and credit of Lloyds, and Serra calls CEO Hora Osorio one of the bet bank chiefs in Europe.
    | Tue, May 12, 12:37 PM | 4 Comments
  • Tue, May 5, 5:24 AM
    • Despite the recent scandals that have plagued the bank, HSBC's (NYSE:HSBC) first-quarter profit beat analysts' estimates, benefiting from an increase in securities revenue and lower bad loans.
    • Pretax profit rose to $7.1B vs. $6.8B a year earlier.
    • The bank also said it would make the decision whether to move its headquarters out of the U.K. within months rather than years.
    • HSBC -2.4% premarket
    | Tue, May 5, 5:24 AM | 7 Comments
  • Thu, Apr. 30, 11:55 AM
    • HSBC (HSBC -0.8%) runs the 7th largest bank in Brazil, with a 2.7% market share based on assets, and has hired Goldman Sachs to help find a buyer for most of it, reports the WSJ. Possible buyers would naturally include the country's banking giants, Banco Bradesco (BBD -1.9%) and Banco Santander Brasil (BSBR -2.1%).
    • The move comes ahead of HSBC's presenting of a new strategy aimed at those who say the bank is too big to effectively manage.
    • HSBC is also weighing a retreat from Turkey, according to the Journal's sources, but the U.S. and Mexico are expected to be spared in the strategic review.
    | Thu, Apr. 30, 11:55 AM | Comment!
Company Description
HSBC Holdings PLC provides banking and financial services through four segments namely Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets and Global Private Banking.