Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. HSBCs international network comprises over 9,800 offices in 77 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. Companby has listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges. Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.

            Red = 25 day moving average.           Green = 200 day moving average.

that would be very bad, I hope not..

China is falling down soon and HSBC is just starting to feel the pinch...



HSBC confirms rights issue, cuts divi - MoneyAM


HSBC today confirmed it is seeking to raise 12.5bn from shareholders through a rights issue. The banking giant said the money raised would assist it in dealing with the impact of the present uncertain economic environment.

HSBC also reported pretax profit for 2008, excluding goodwill impairment, of $19.9bn, down 18%. On a reported basis, pretax profit was $9.3bn, down 62%.

Earnings per ordinary share excluding goodwill impairment were down 18% to $1.36 (2007: $1.65). On a reported basis, earnings per share was $0.47, down 72% (2007: $1.65).

The banker said it would be writing no further consumer finance business in the US through the HFC and Beneficial brands and it would be closing the majority of the network.

HSBC said capital generation remains strong., with a Tier 1 ratio of 8.3% and total capital ratio of 11.4% at 31st December 2008.

The fully underwritten Rights Issue announced would enhance capital strength.

Subject to shareholder approval on 19th March 2009, the Rights Issue will add 150 basis points to capital ratios, strengthening the core equity tier 1 ratio to 8.5% and the tier 1 ratio to 9.8%, both on a pro forma basis as at 31st December 2008.

Total dividends in respect of 2008 were $0.64 including fourth interim dividend of $0.10, down 29%, around 15% in sterling terms. Total value of dividends for 2008 of $7.7bn.

Loan impairment charges and other credit risk provisions were $24.937bn in 2008, $7.695bn higher than 2007.

The group's total assets at 31st December 2008 were $2,527bn, an increase of $173bn, or 7%, since 31st December 2007.

Stephen Green, Group Chairman, said: '2008 was the most extraordinary year for the global economy and financial services in well over half a century. It marked the first crisis of the era of globalised securitisation. And it also marked the first crisis of the just-in-time global economy as the impact of the financial crisis fed rapidly straight into the performance of the real economy.

'We at HSBC were not immune from the crisis. But we have built our business on very strong foundations and are able to report results which demonstrate our ability to withstand the storm.'

Still going down

Any idea what is the next support point

rights price 254p!?.

I think you are right with the 254p or maybe lower.

massive drop today (18%) where next? Has the market sussed them out?

maybe a tree shake...took a punt at 357p

Isn't the SP likely to settle at around the 2.54 rights issue price?

I'm a shareholder, BTW!

Who is ETON PARK INTERNATIONAL LLP?
They have shorted HSBC in September and still adding?

dividend? good

better than nothing

Any views on the direction of the SP from this point ?

Will build on floor at which the rump is placed early on Monday morning.

Back to the track

wow,,,sp is up for the last week ,,nice,, hope it continues.

wow nice 701.00

HSBC sues accused Democratic fund-raiser in New York

http://www.reuters.com/article/marketsNews/idCNN1827221920090918?rpc=44

* Fund-raiser for Obama and Clinton
* Bank says it was deceived into lending him $100 million

NEW YORK, Sept 18 (Reuters) - A fund-raiser for Barack Obama, Hillary Clinton and other Democrats who was charged last month with defrauding Citigroup Inc (C.N) is being sued by HSBC (HSBA.L) for deceiving it into lending him $100 million.

The lawsuit filed in New York State Supreme Court in early September accused private equity firm head Hassan Nemazee, 59, of engaging in an elaborate scheme to make HSBC Bank USA believe that its loan was secured by collateral in the form of U.S. Treasury Notes when it was not.

Nemazee, who sits on the board of the Iranian American Political Action Committee, typically donates more than $100,000 annually to Democratic political candidates.

He is listed as one of the top "bundlers" of contributions to Obama's 2008 presidential campaign, according to OpenSecrets,org, a website run by the Center for Responsive Politics research group.

Nemazee was charged on Aug. 25 of one count of bank fraud for seeking a $74 million loan from Citigroup's banking unit under false pretenses.

He was arrested at Newark Liberty International Airport in New Jersey on Aug. 23 as he was checking in for a flight to Italy, according to court papers.

U.S. prosecutors accused him on Sept. 2 of defrauding other banks. In a letter to a magistrate judge in Manhattan federal court, prosecutors said he repaid the Citibank loan by defrauding another bank, but did not identify it.

The bank was HSBC, according to the civil lawsuit. The bank sued Nemazee for breach of contract and fraud. Nemazee's lawyers could not immediately be reached for comment.

The HSBC lawsuit, dated Sept. 2, said that "to accomplish the fraud, Nemazee represented to HSBC that he had $89 million in Treasury Notes, with a current market value of more than $125 million, in a specified brokerage firm account; submitted a supposed agreement from the brokerage firm with forged signatures, false addresses, and false telephone numbers; used a mail drop; and submitted fabricated brokerage statements."

HSBC said that on Aug. 24, "Nemazee drew $75 million from HSBC on his fraudulently obtained credit facility, and used the funds to pay off his Citibank loan."

In court papers, lawyers said the government had frozen two of Nemazee's accounts at JPMorgan Chase & Co (JPM.N).

They said JPMorgan Chase froze his securities account at Brean Murray, Carret & Co and Bank of America Corp (BAC.N) froze his funds and those of his children.

If convicted, Nemazee faces up to 30 years in prison and a fine that could reach $1 million or more on the one criminal charge.

The cases are HSBC Bank USA NA v Hassan Nemazee 602735/2009 in New York State Supreme Court in Manhattan and U.S. v. Nemazee, 09-mj-1927 in U.S. District Court for the Southern District of New York (Manhattan). (Editing by Ted Kerr).

Interim Management Statement

HSBC INTERIM MANAGEMENT STATEMENT




Profitability for the first nine months of 2009 was stronger than our expectations at the start of the year, as positive trends experienced in the first half continued into the third quarter. As a result, year to date pre-tax profit was ahead of the comparable period in 2008 on an underlying basis, excluding movements in fair value on our own debt related to credit spreads. On the same basis, pre-tax profit for the third quarter of 2009 ('Q3 2009') was significantly ahead of Q3 2008. On a reported basis, HSBC's performance in Q3 2009 was lower than in Q3 2008, largely due to fair value movements on our own debt caused by tightening credit spreads.




Building on its exceptional first-half results, Global Banking and Markets maintained its record performance for the year to date. In the US consumer finance run-off portfolio, loan impairment allowances declined in the quarter, representing the first quarterly fall since the start of 2006. In emerging markets, revenues in Personal Financial Services and Commercial Banking held up well and, with the exception of the Middle East, loan impairment charges were notably lower than in the preceding quarter as economic conditions improved. Tight cost control also ensured that total costs for the year to date compared favourably with 2008.




The Group's tier 1 ratio increased to 10.3 per cent, and the core equity tier 1 capital ratio strengthened to 9.0 per cent. HSBC maintained its strong liquidity position, with its published advances-to-deposits ratio remaining under 80 per cent. On 2 November, the Board declared a third interim dividend of US$0.08 per ordinary share, with a value of approximately US$1.4 billion, bringing total dividends in respect of the first nine months to US$4.2 billion. Capital generation comfortably exceeded dividends in each quarter.