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HSBC Holdings PLC (HSBC)

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  • Dec. 11, 2012, 2:31 PM
    Along with a $1.92B fine for allowing itself to be used as a tool for money-laundering by Mexican drug cartels (not to mention sweethearts in the Middle East and elsewhere), HSBC (HBC) will spend $700M on a global "know your customer" program - more or less the implementation of a range of anti-money-laundering safeguards.
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  • Dec. 10, 2012, 4:01 PM
    The U.S. is set to announce a $1.9B settlement with HSBC (HBC) over money-laundering charges with regards to Iran, reports the WSJ. That a settlement was coming was leaked last week (though to the tune of $1.8B). Earlier, Standard Chartered was fined $327M for its own money-laundering scheme with the Iranians.
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  • Dec. 10, 2012, 6:03 AM
    The Bank of England and FDIC unveil the first cross-border plan to deal with too-big-to-fail banks that start...failing. Senior management would be sacked, shareholders would be wiped out, and unsecured bondholders "can expect that their claims would be written down to reflect any losses that shareholders cannot cover," which didn't happen in the financial-crisis bailouts. (PR)
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  • Dec. 7, 2012, 12:18 PM
    HSBC (HBC) is downgraded to AA- from AA by Fitch, which says the bank's diversity across businesses and geography may no longer be a strength, and has instead been "neutralized" by the increasing cost of managing the whole operation.
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  • Dec. 5, 2012, 8:10 PM
    HSBC (HBC) may pay a $1.8B fine to settle with the U.S. as part of a money laundering suit alleging the bank allowed clients to move illicit funds from Mexico and Iran among other countries. The potential settlement, which has been in the works for months, could be settled as early as next week. The case could serve as a litmus test for just how far U.S. prosecutors will go to try and halt illicit flows of money moving through U.S. banks.
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  • Dec. 5, 2012, 2:42 AM
    HSBC (HBC) agrees to sell its 15.6% stake in China's Ping An Insurance for $9.38B to Charoen Pokphand Group, which is controlled by Thailand's richest man, Dhanin Chearavanont. Having bought the holding for $1.7B in 2002-2005, HSBC will earn a profit of $7.68B. With the deal part of HSBC's strategy of selling non-core operations, analysts reckon its 19.9%, HK$79B ($10.19B) stake in China's Bank of Communications could be next. (PR)
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  • Nov. 29, 2012, 6:34 AM
    The Bank of England's Financial Policy Committee accuses British banks of possibly misleading investors about the health of their finances. In its semi-annual report, the panel says banks may be overstating capital levels by not recognizing potential losses on loans and playing down risks. Banks may also not have made enough provisions to cover the costs of compensating customers for the mis-selling of certain financial products.
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  • Nov. 28, 2012, 3:56 AM
    The Fed is reportedly considering forcing foreign banks to combine their U.S. operations into American holding companies, which would require the units to meet minimum capital standards regardless of the resources of the parent firms. The move could increase costs, force foreign banks to inject billions of dollars into their U.S. ops, limit the movement of capital and even hurt lending.
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  • Nov. 27, 2012, 7:54 AM
    Royal Bank of Scotland (RBS) is upgraded to Buy at UBS, which believes Mark Carney's appointment to head the Bank of England signals a more conciliatory regulatory environment for U.K. banks. Gerard Lane of Shore Capital disagrees: "He strikes us as a hardliner." Citigroup notes average bank core tier 1 capital ratios are lower in Canada than in the U.K.
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  • Nov. 19, 2012, 2:21 AM
    HSBC (HBC) is in talks to sell its 15.6% holding in Ping An Insurance, China's second-largest insurer, as the U.K. bank continues its strategy of selling non-core assets. Chinese analyst Wilson Li says HSBC can reinvest the proceeds in its organic business in China and generate a better return than the Ping An stake, which is worth $9.19B.
     
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  • Nov. 9, 2012, 4:25 AM
    HSBC (HBC) is the target of yet another probe into its corporate controls, with the Daily Telegraph reporting that the U.K.'s HM Revenue & Customs is investigating the bank's offshore accounts in the English Channel island of Jersey held by thousands of British and other citizens. These include a drug dealer, a gun runner, three bankers facing fraud allegations, and suspected tax evaders.
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  • Nov. 5, 2012, 4:11 AM
    More on HSBC (HBC) Q3: earnings aided by a sharp drop in bad debts, as well as by growth in Global Banking and Markets, mainly in Rates and Credit as eurozone conditions stabilized relative to last year, and in Commercial Banking, where net interest income rose. Generates cost savings of $500M, taking total annualized savings to $3.1B. Remains confident in its outlook for growth in China. Shares -1.45% in London. (PR)
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  • Nov. 5, 2012, 4:02 AM
    HSBC (HBC): Q3 pretax profit +125% to $5B vs estimates of $5.6B. Underlying revenue +20% to $16.13B. Takes provision of $800M to cover a potential U.S. fine for problems with its anti-money laundering controls - adding to $700M set aside in July - and $353M charge for mis-selling in the U.K., mainly of payment protection insurance. (PR)
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  • Nov. 2, 2012, 5:32 AM
    Citigroup (C), Deutsche Bank (DB), HSBC (HBC) and JPMorgan (JPM) will have to hold an extra 2.5% of Tier 1 Capital on top of the 7% minimum required under Basel III rules, regulators said yesterday. Barclays (BCS) and BNP Paribas will need an extra 2%, while eight banks, including BofA (BAC) and Goldman Sachs (GS), will need 1.5%. Overall, 28 banks are considered "global systemically important" and have to hold extra capital. Lloyds (LYG) has dropped off the list but BBVA (BBVA) and StanChart have joined it.
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  • Oct. 22, 2012, 6:24 AM
    No more light-touch regulation in the U.K.: the Financial Services Authority is forcing banks to hold £150B of "Pillar 2 buffer" capital on top of the £186B needed under Basel rules. The additional amount is much higher than the £20B required prior to the financial crisis. The FSA's Andrew Bailey tells the FT that the extra cushion allows regulators to experiment with ideas to encourage lending.
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  • Oct. 12, 2012, 7:44 AM
    The EU could delay the phasing in of tough new Basel rules on banks by a year from the international start date of January 1, 2013, Bloomberg reports. Banks have said that the date is "wholly unreasonable" given that the EU still hasn't finalized how it will implement the measures.
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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.