HSBC Bank on Verge of Collapse

Hawk Eye · 1 HSBC Bank on Verge of Collapse Mon Jan 27, 2014 12:27 pm

Hawk Eye

Expert

Posts : 896
Equity Stars : 7043
Reputation : 44
Join date : 2011-03-13

Received some bad news from UK & Singapore. Any idea here?

http://iacknowledge.net/hsbc-bank-on-verge-of-collapse-second-major-banking-crash-imminent/

Slstock · 2 Re: HSBC Bank on Verge of Collapse Mon Jan 27, 2014 12:36 pm

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13570
Reputation : 1158
Join date : 2011-01-22

Have not looked into HSBC financials. But there is romour floating around.

We don;t know whether it is to panic shareholders to sell off to induce a crash. You know how manipulators work.

Below is an interesting report ( maybe HSBC is taking steps to stop this panic)
http://www.bbc.co.uk/news/business-25861717

The Sri Lanka HSBC is AAA with outlook stable ( by Fitch in may 2013)

Backstage · 3 Re: HSBC Bank on Verge of Collapse Mon Jan 27, 2014 12:46 pm

Backstage

Moderator

Posts : 677
Equity Stars : 5756
Reputation : 28
Join date : 2011-04-14
Location : Kotte

Not a word on WSJ or Bloomberg !

balapas · 4 Re: HSBC Bank on Verge of Collapse Mon Jan 27, 2014 12:48 pm

balapas

Senior Manager - Equity Analytics

Posts : 359
Equity Stars : 5254
Reputation : 26
Join date : 2011-07-25
Age : 44

Have only your liabilities with HSBC i.e credit cards, loans etc. Interest received is -below par for savings and fixed deposits.

sureshot · 5 Re: HSBC Bank on Verge of Collapse Mon Jan 27, 2014 1:06 pm

sureshot

Vice President - Equity Analytics

Posts : 1224
Equity Stars : 7878
Reputation : 19
Join date : 2011-04-26

so need another merge like TFC ? Very Happy

smallville · 6 Re: HSBC Bank on Verge of Collapse Mon Jan 27, 2014 1:38 pm

smallville

Associate Director - Equity Analytics

Posts : 4119
Equity Stars : 10302
Reputation : 530
Join date : 2011-02-03
Location : Back on Earth

Nuh.. I highly doubt it..

It sayds, “The People’s Bank of China , the central bank, has just ordered commercial banks to halt cash transfers."
So most probably its an inter-country regulatory autority order ...

HSBC has been the subject last year (or prev. year) due to getting caught in a money laundering scandal (A drug cartal in Mexico) and had paid a huge fine as big as US$ 1.92 billion to U.S. authorities but still going strong.
http://www.reuters.com/article/2012/12/11/us-hsbc-probe-idUSBRE8BA05M20121211

The success I believe, comes from the outsourcing of global back-office work load to other Asian countries for cheap labour. In India, HK, Malaysia, Sri Lanka, China and several other countries they've setup massive buildings to carry out work as BPOs paying 1/3 - 1/5 of the amount compared to the host country same positions.
These centres are run with modern technologies offering a fair amount of fringe benefits to the employees as well. (source - a friend used to work for SL centre)

rainmaker · 7 Re: HSBC Bank on Verge of Collapse Mon Jan 27, 2014 2:34 pm

rainmaker

Assistant Vice President - Equity Analytics

Posts : 914
Equity Stars : 6434
Reputation : 45
Join date : 2013-02-06

http://www.bloomberg.com/news/2014-01-16/hsbc-may-overstate-assets-by-92-3-billion-forensic-asia.html

Deferred tax assets (or DTA) are not used for solvency purposes. They exist because the tax rules differ from the accounting rules

For examples accounting rules allow certain expenses to be deferred. But tax rules do not allow this.

So you can get a tax benefit/expense today but you need to spread it. That creates a deferred tax asset/liability

------------------

For solvency purposes the intangible assets/liabilities are not used in the stress test

Slstock · 8 Re: HSBC Bank on Verge of Collapse Mon Jan 27, 2014 2:46 pm

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13570
Reputation : 1158
Join date : 2011-01-22

Article says HSBC need $110 capital ( just a statement)

Okay want to compare CSE size ?

Whole CSE worth is Rs 2.6 Trillion presently. That only $20 billion!

Btw there are about 20 reported Billionaires in the world who can buy CSE totally and just forget it ( hypothetically) . They will still have money left to spend to live comfortably not dependent on CSE.

Maybe there are some people in Sri Lanka ( unofficial) who can buy CSE totally ;-)