Why is no-one talking about HSBC?

RichardDJ

Stupid question, or may not be..with LloydsTSB, HBOS, NR etc all in the toilet...why have we not heard from HSBC?

Is their business model so different!? There has been nothing from them other than a 10% redundencies of staff in London (don't quote me, can't remember the exact figure)

Any thoughts folks?

Cleaver

Bearing in mind that I'm straying from my comfort zone posts of kn*b gags and poor satire here, but I think it's to do with their business model. I remember seeing something on the news that there were two main aspects to HSBC:

1) They don't have the same exposure to subprime mortgages on mexican shacks owned by tramps that the other banks do.

2) They have a much more equitable loan to asset value. I think they may even have more assets (i.e. money in their lovely big safes) than the money they have lent out. I'm sure Northern Rock had around 12 pounds loaned to every 1 pound saved, although that didn't mean they weren't profitable, just risky. HBSC was much closer to 1 to 1.

All the above could be complete rubbish though, and I'm just as likely to have dreamt all of it as I was seeing it on the news.

dopester

With ebay, there is something called "the network effect."

Once it established itself, and won the battle with the slower-loading QXL (the person who set it up couldn't think of a name, so for inspiration kept saying "quick-sell" over and over, faster and faster) - it really made it harder for new entrants to challenge.

People want their items to be viewed by as many potential bidders as possible.

My view is HSBC is possibly attracting more business and a great deal of new funds, from all its operations around the world, because, despite a few mistakes like "Household" in the US, it is increasingly viewed as one of the smartest and strongest banks - when viewed against what other banks have become. That alone may have helped it a lot.

That isn't to say I know all about HSBC's dealings.

In recent years HSBC has reported superb $ multi-billion profits from Asia, that saw it overcome its $ multi-billion losses from the US, but now Asia is probably going to have its share of problems.

seraphina

I think, to a certain extent, someone very clever in HSBC saw this coming. Don't forget HSBC sold their expensive London headquarters at the peak in 2007, but continued to rent it - the ultimate STR?

They are also big in savings in the Far East, however I have no idea how a bank with savings in one country can use that deposit money to loan in another.

mewbie_2

seraphina wrote: »

I have no idea how a bank with savings in one country can use that deposit money to loan in another.

It sounds really easy to me. But then I'm not Generali.

purch

I have no idea how a bank with savings in one country can use that deposit money to loan in another.

They stick it all in a big container, and ship it over !!!!

purch

Why is no-one talking about HSBC?

A) They are not in trouble (yet :eek: )
They are not a British Bank

bo_drinker

As Dopester says they are one of the biggest and strongest banks. Probably "the" smartest on the High St at present. While those around them crumble they are taking on new business. And of course they didn't want anything to do with shacks owned by Mexican tramps with no work. (Smart move)

dopester

purch wrote: »

They are not a British Bank

Oops. They are. I saw the Chief Exec interviewed 3 months ago, saying it was their duty to examine domicile every 2 or 3 years.

Currently they still are a British bank.

mewbie_2

!!!!!!. Seems everyone's talking about HSBC now. And I don't know anything about them. Dammit. I know - make something up.

Hey guys, FT today said HSBC are coming unstuck big time with some CDO shorting in Rotherham, and if this monkey gets the banana then we're all going down the greasy spoon big time.

That'll fox 'em.

purch

Edit:

A) They are not in trouble (yet :eek: )
ERrrrrrrrr..........;)