HSBA buy?

John_Brown_4

Look like a good long term buy? Tier one will be 9.8%, beating the other dogs.

97trophy

I don't think the bad news is over yet for hsbc. There could still be a lot more losses from their US arm.

Brian_Bullocks

97trophy wrote: »

I don't think the bad news is over yet for hsbc. There could still be a lot more losses from their US arm.

I thought they are shutting it down? HSBC held it's hands-up when they encountered defaults in the US 3 years ago, perhaps they are telling the truth by budgeting for the worst case scenario?

ad44downey

Brian_Bullocks wrote: »

I thought they are shutting it down?

They can close it down but they'll still be liable for its liabilities and debts. If you're going to buy, you're best waiting until the rights issue is out of the way. If you bought today, they'll be asking you for a load of extra money in a few weeks.

McSaver

Put your money in BARC instead.

97trophy

Brian_Bullocks wrote: »

I thought they are shutting it down? HSBC held it's hands-up when they encountered defaults in the US 3 years ago, perhaps they are telling the truth by budgeting for the worst case scenario?

HSBC still have around $147 billion in loans to US customers. Around $50 billion is credit card debt and the rest is mostly lent through Household (its US sub). So IMO there is still plenty that could go wrong.

chookie1

If you had to buy shares in a bank then I'd probably pick HSBC (or maybe Wells Fargo in the US) but that would be with my arm twisted right up my back - there are so many other better companies to invest in at the moment.....