HSBC chief telling it how it is - second downturn inevitable.

skap7309

To go public and state this shows we have to expect the obvious.

http://www.ft.com/cms/s/0/41c8f48a-b10d-11de-b06b-00144feabdc0.html?nclick_check=1

Michael Geoghegan, chief executive of HSBC, is so convinced there will be a second downturn in the coming months that he plans to delay any rush to expand the bank.

Graham_Devon

This man is obviously wrong. Hamish has said otherwise.

chucky

Graham_Devon wrote: »

This man is obviously wrong. Hamish has said otherwise.

Hamish talks about the UK house prices, Geoghegan is talking about the economy as a whole. there is a massive difference :rolleyes:

does HSBC look to China or the UK for expansion - which has bigger growth prospects and bigger profit potential for HSBC?
pretty obvious really

Jonbvn

HSBC are traditionally a conservative (with a small "c") and cautious bank. Pity some of the other banks/BS didn't follow their approach.

However, they are sending out mixed messages, given that HSBC are considering acquiring a bank in mainland China, and seem to be leading the way in mortgage lending???

michaels

VI: If I were in the market to buy I would be talking it down rather than up...

gjchester

Jonbvn wrote: »

HSBC are traditionally a conservative (with a small "c") and cautious bank. Pity some of the other banks/BS didn't follow their approach.

So were LLoydsTSB, and look what the directors did when HBOS and the chance of a quick buck reared it's head.

Generali

gjchester wrote: »

So were LLoydsTSB, and look what the directors did when HBOS and the chance of a quick buck reared it's head.

As I heard it said, they failed to do their due negligence.

gjchester

Generali wrote: »

As I heard it said, they failed to do their due negligence.

That or wanting to do DD and being forced to not do DD in depth by the goverment wanting to stabilise the banking market..

Wookster

Jonbvn wrote: »

However, they are sending out mixed messages, given that HSBC are considering acquiring a bank in mainland China, and seem to be leading the way in mortgage lending???

Isn't that because they see a shift in the balance of economic power from west to east, the east being an area where their will be considerably more growth over the next decade than the west?

Jonbvn

Wookster wrote: »

Isn't that because they see a shift in the balance of economic power from west to east, the east being an area where their will be considerably more growth over the next decade than the west?

I wouldn't disagree with that premise. I'm certainly angling some of funds towards China, SE Asia and possibly even India.

Alan_M_2

Generali wrote: »

As I heard it said, they failed to do their due negligence.

Was it worth it to simply obtain the market share they now enjoy?

Or do you think when all this is shaken down in however many years or decades it takes...they'll be obliged to reduce their size or split from what was previously HBOS?