Why is no-one talking about HSBC?

Generali

IMO, HSBC dodged the bullet mostly by accident.

In late 2004, HSBC acquired a US subprime lender called Household Finance. It quickly turned out that they had been involved in all sorts of dodgy practices - the things that stuck in my mind were repeatedly calling mortgagees and trying to persuade them to increase the amount of their mortgage and also lying to people about what was in the small print.

They were pretty badly bitten by the whole experience and their plan to enter the US subprime market was in tatters.

It doesn't surprise me that they didn't get done by the whole CDO/RMBS thing as I used to work for their treasury department and they were extremely conservative on the trading side. They realised (correctly) that in dealing with wholesale cash products, the risk gets ramped up very fast and the additional returns just don't justify the potential for loss.

chucky

Generali wrote: »

It doesn't surprise me that they didn't get done by the whole CDO/RMBS thing as I used to work for their treasury department and they were extremely conservative on the trading side. They realised (correctly) that in dealing with wholesale cash products, the risk gets ramped up very fast and the additional returns just don't justify the potential for loss.

their credit derivs volumes are very low - they got into the market a bit late. maybe a good thing.

Generali

chucky wrote: »

their credit derivs volumes are very low - they got into the market a bit late. maybe a good thing.

TBH, it just isn't their thing.

We used to write a lot of derivatives but a large proportion were to enable companies to manage their risk rather than to make speculative gains. It would be things like companies buying stuff for future delivery so they could lock in the current price and helping their planning.

chucky

Generali wrote: »

TBH, it just isn't their thing.

We used to write a lot of derivatives but a large proportion were to enable companies to manage their risk rather than to make speculative gains. It would be things like companies buying stuff for future delivery so they could lock in the current price and helping their planning.

yes you are right - they seemed to only trade on the back of other transactions.

however, i think they are now slowly getting into the Credit market as far as being a dealer goes.

penguine

bubblesmoney wrote: »

but interest rates are higher in india

Yes, just got back from a holiday in Delhi and was surprised to see a mortgage lender advertising on TV "floating interest rates from 8.75% upwards". Rates like that would be a real shock to many UK homeowners.

GrammarGirl

omelette451 wrote: »

I don't know about mortgages but I can confirm they are definitely trying to claw back money owed, and are getting pretty desperate about it. I still have an overdraft from my student days (still interest-free, so don't yell it's actually very MSE!) and they've been ringing me up loads begging me to pay it off, despite saying that they know I don't actually have to until next summer. In the end they said just to pay a small sum (I picked £2) every month as it'll stop the computer flagging me up. I assume it's the same situation for you: they won't force you to pay if your contract says you don't have to, but I'd say always consider it if you can afford it (regardless of current events), as the quicker you pay it off the less interest you'll be charged and the more you can enjoy your retirement.

That's interesting... I too have a Graduate OD with HSBC (interest free for the first £1,000) and have had no communication from them about paying it back. I do pay a small amount of interest because I use more than £1,000 of it (I know, very bad) so maybe that's why?

Are you in the first year of your graduation? If so I think you have another two years before you get charged interested on the whole whack, therefore have to (or maybe should) pay it back. My interest-free portion reduces to £500 in July this year.

Jonbvn

bubblesmoney wrote: »

each bank is exclusive and the uk and india operations are different with each unit having no access to the other ones accounts.

This is not strictly true. I have a premier account with HSBC UK. You can "link" this account with your other HSBC accounts in other contries including India. You are able to access all your HSBC accounts in all countries with one login. It is called HSBC Global View.

lostinrates

Jonbvn wrote: »

This is not strictly true. I have a premier account with HSBC UK. You can "link" this account with your other HSBC accounts in other contries including India. You are able to access all your HSBC accounts in all countries with one login. It is called HSBC Global View.

Hmmm. Interesting. Thank you.

Wookster

Where I worked before this job, we did all sorts of work with (and reporting on) banks and investment banks and it was clear that HSBC was the typical boring bank. If HSBC was a person they wouldn't have left an impression when you met them, you might have even forgotten.

Also they didn't seem to be caught up in the massive big salary & bonus game that other banks played.

I think it all goes down to a conservative culture, which they obviously had.

bubblesmoney

Jonbvn wrote: »

This is not strictly true. I have a premier account with HSBC UK. You can "link" this account with your other HSBC accounts in other contries including India. You are able to access all your HSBC accounts in all countries with one login. It is called HSBC Global View.

yes i know you can link accounts in india and uk, thats precisely what i said in my earlier post

bubblesmoney wrote: »

......hsbc units in different countries are compartmentalised. hsbc uk follows uk rules and hsbc-india follows indian rules which i gather are more stringent. in the uk in some places hsbc-india has some branches which provides facilities for non-resident indians. but these accounts can be linked with hsbc-uk accounts, funds transfer is easier and fee free. but each bank is exclusive and the uk and india operations are different with each unit having no access to the other ones accounts. a lot of back office IT functions for most of the hsbc units across the world........

some branches which operate across different countries (i think there is a hsbc-india branch in leicester where you can operate both uk and india accounts, i know because a friend has an account there). but in ordinary branches in uk or india you cant access your account from another hsbc account in the other country. i have tried accessing my uk hsbc account via a main branch in bombay/mumbai but was told they dont have any access to hsbc-uk accounts as it is a different entity to hsbc-india accounts, although they do have tie ups for easier transfers etc. but they do have an international banking account or something like that specifically meant for globe trotting customers, which i havent explored as i have no need for it. when i mentioned you donty have access to your account simultaeneously i just meant the bank staff in ordinary hsbc branches dont have access to your other hsbc accounts in other countries much like staff in ordinary RBS/natwest banks in Uk cant access RBS/natwest accounts in isle of man etc on their internal computer systems :beer: