Jump to content
House Price Crash Forum

Hsbc Reveals Plans To Quit London For Hong Kong


Recommended Posts

In 2008 HSBC looked the most secure bank they hadn't resorted to the same fraudulent lending as other banks. For years they had probably missed out on profits by running a tighter ship. In 2008 they should have got their reward when the other banks failed and they got more business in a properly regulated industry. But look what happened - the poorly run banks swept their bad debts under the carpet so in the UK crime pays. Nothing has changed about our regulation since.

I think they are probably leaving because they have been driven out by corruption in the UK. It's like the Chinese firm that tampered with their milk powder to cut costs and make more profits - once firms can do this they all have to or they cannot compete. HSBC are probably leaving not because they are worried about regulation etc but that they have decided there isn't going to be any. They can see what's happening in the UK - our politicians are in the pockets of big business and fraudulent lending is continuing (1in 3 mortgages still non-income verified) to support the housing ponzi scheme - perhaps they don't want to try compete in that market? Eventually there is going to be one major collapse (probably when Labour get back in). Why stay and be part of that?

who said they are leaving?

they are not.. the article says they are having their usual three year review, and a shareholder has said that he can see a pretty handsome dividend if they do make the move.

The bank itself says the decision to move is more likely than at previous reviews...

Link to post
Share on other sites
  • Replies 130
  • Created
  • Last Reply

Top Posters In This Topic

Popular Days

Top Posters In This Topic

that situation is also largely thanks to these banking scum selling the country down the river, load the population up with debt, sell out the companies to whoever will give them the sweetest deal - and yes as market makers/financiers they do pull the strings.

To stop the rot you have to take out the bad wood.

And how exactly does this apply to HSBC who never took a penny of bailout money from the UK government and employs thousands of people in the UK?

Link to post
Share on other sites

In 2008 HSBC looked the most secure bank they hadn't resorted to the same fraudulent lending as other banks. For years they had probably missed out on profits by running a tighter ship. In 2008 they should have got their reward when the other banks failed and they got more business in a properly regulated industry. But look what happened - the poorly run banks swept their bad debts under the carpet so in the UK crime pays. Nothing has changed about our regulation since.

I think they are probably leaving because they have been driven out by corruption in the UK. It's like the Chinese firm that tampered with their milk powder to cut costs and make more profits - once firms can do this they all have to or they cannot compete. HSBC are probably leaving not because they are worried about regulation etc but that they have decided there isn't going to be any. They can see what's happening in the UK - our politicians are in the pockets of big business and fraudulent lending is continuing (1in 3 mortgages still non-income verified) to support the housing ponzi scheme - perhaps they don't want to try compete in that market? Eventually there is going to be one major collapse (probably when Labour get back in). Why stay and be part of that?

"Most secure bank" is a pretty relative term, they are still a bunch of fraudsters and their business model is ******** minus government backstop.

Link to post
Share on other sites

And how exactly does this apply to HSBC who never took a penny of bailout money from the UK government and employs thousands of people in the UK?

They got bailout money, obviously.

Unless you think that they would have miraculously got paid out from all the bank that would have failed with no bailout.

Link to post
Share on other sites

"Most secure bank" is a pretty relative term, they are still a bunch of fraudsters and their business model is ******** minus government backstop.

Most secure means they have lots of influence with the people who have all the guns..... more guns = more secure, surely you don't need to be told that! :D

Link to post
Share on other sites

And how exactly does this apply to HSBC who never took a penny of bailout money from the UK government and employs thousands of people in the UK?

nonsense.

they took.....guarantees on CDOs issued by british banks

They took....low or near zero interest rates.

they took...hands off regulation.

there are 7 others, but I cant remember them all....and thats apart from emergency funding.

Link to post
Share on other sites

to be fair of all the major banks HSBC was the most stable and conservative.

it had the biggest capital reserves of all the banks and never required any bailout money.

Yeah they are only leveraged 20 or 30 to 1 and had no business with any other UK bank, nor where they owed any money from any other bank that got a bailout.

:rolleyes:

Link to post
Share on other sites

I like my scumbags a long way off, don't know about you.

+ 1

Local scumbags break into your house and clean you out of your hard earned possesions. :)

Let them go and spoil somebody else's neighbourhood.

There's alot of intellectually dishonest discourse by bankster apologists saying 'yes we must rebalance the economy' but 'we need to maintain this 'industry' which we are a world leader' - 2 completely contradictory statements.

Link to post
Share on other sites

Can anyone remind me how the Chinese government deals with people found guility of corruption and fraud? :ph34r:

Re-education through work (Laogai) think Auschwitz. You will be both starved and worked close to death. Then treated nicely for a bit before being subject to lethal injection and organ harvested. IIRC a banker stole 5 million around 00-2005. He was put in Laogai till 2009 before being shot.

Link to post
Share on other sites
I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war. God grant that my suspicions may prove groundless."

-- U.S. President Abraham Lincoln, Nov. 21, 1864

(letter to Col. William F. Elkins)

If they go, don't do business with them.

Link to post
Share on other sites

redpanda

I can see you are passionate but your arguments lack depth. HSBC changing it's company HQ to HK will not have a massive impact upon us. The 000s employed here will continue to be employed here. It's just the board shifting, and a few of their lackies too. The bulk of the staff working here are required here, otherwise their jobs would already be offshored to save costs.

And they did benefit from the bailout money. Not a single bank denies that, hence you don't ever hear them say a word to the contrary.

We can't let a company dictate our morals and hence our rules. Everyone is clear that there needs to be change and to water that down to keep a few extra shillings in the coffers would cost us far more in the long term than we ever receive through corporation taxes from a minority.

As for people wanting to relocate to HK. Don't assume it's an easy choice for them. It's far from it and I doubt many would leap at the 'opportunity'.

Link to post
Share on other sites
Guest sillybear2

Re-education through work (Laogai) think Auschwitz. You will be both starved and worked close to death. Then treated nicely for a bit before being subject to lethal injection and organ harvested. IIRC a banker stole 5 million around 00-2005. He was put in Laogai till 2009 before being shot.

It appears the Chinese have found the solution to moral hazard.

Link to post
Share on other sites

Some of these reactions just stagger me.

HSBC, if memory serves, were the only UK bank back in 2007/2008 that had a loan/deposit ratio of less than 100% (i.e. funded their loans with deposits as opposed to the money markets) and had a mortgage market share in 2007 of only 3% despite its overall market share being a multiple of this.

So we have the best run UK bank which has been a success in dozens of countries around the world saying that the economic environment in the UK is crippling them overseas as they are being taxed here on their entire balance sheet - not just their UK one. Also, they will be unable to compete in Asia where local banks will be able to pay overall higher levels of remuneration at a lower cost to the shareholders.

So HSBC will still be on every high street here but the strategy and direction of the bank will shift to Asia. The UK part of the bank will very much remain in the UK and be regulated in the UK. What they are saying is that the other bits will now be regulated out of Hong Kong. And of course as a result a decent chunk of tax will be lost to the UK.

Discussions with large institutional shareholders on such matters are entirely normal - for a sensible bank. Clearly HSBC want to see what it's owners (unlike Lloyds, RBS these are NOT you) think.

I think it is laughable that people on this board are cheering as the grown-up bankers leave. You'll be left with the schoolchildren bankers who will be awarded sweeties for doing exactly what the headteacher says. If you genuinely think this is the way to run banks, the financial sector or indeed this country then please could you all leave to a friendly communist country.

Show me a prosperous country that doesn't have a well functioning banking sector. Or do you want workers cooperatives like Cuba?

And no I do not work with HSBC.

And no I'm not a banker.

Link to post
Share on other sites

But wont this just carry on even if they do move their HQ abroad?

First direct has been an excellent bank I have no complaints at all. But these high paid banksters p*** me off. To think that someone on 25,000 working 40 years earns a million in a life time of work. Yet a bankster gets a 7 million bonus in one year.

Probably, but it sets a good example i.e. your not gonna hold us to ransom anymore.

What is needed is proper banking regulation that means that in the UK we get what we need to rebuild a proper economy i.e. fair retail banking for the public; business banking that allocates capital efficiently to real businesses based on real risk.

The rest of it can go to hell.

They'd be a short term hit in tax revenue (but proportionally much less than people imagine) and we can start to build a real and lasting recovery.

Link to post
Share on other sites

Some of these reactions just stagger me.

HSBC, if memory serves, were the only UK bank back in 2007/2008 that had a loan/deposit ratio of less than 100% (i.e. funded their loans with deposits as opposed to the money markets) and had a mortgage market share in 2007 of only 3% despite its overall market share being a multiple of this.

So we have the best run UK bank which has been a success in dozens of countries around the world saying that the economic environment in the UK is crippling them overseas as they are being taxed here on their entire balance sheet - not just their UK one. Also, they will be unable to compete in Asia where local banks will be able to pay overall higher levels of remuneration at a lower cost to the shareholders.

So HSBC will still be on every high street here but the strategy and direction of the bank will shift to Asia. The UK part of the bank will very much remain in the UK and be regulated in the UK. What they are saying is that the other bits will now be regulated out of Hong Kong. And of course as a result a decent chunk of tax will be lost to the UK.

Discussions with large institutional shareholders on such matters are entirely normal - for a sensible bank. Clearly HSBC want to see what it's owners (unlike Lloyds, RBS these are NOT you) think.

I think it is laughable that people on this board are cheering as the grown-up bankers leave. You'll be left with the schoolchildren bankers who will be awarded sweeties for doing exactly what the headteacher says. If you genuinely think this is the way to run banks, the financial sector or indeed this country then please could you all leave to a friendly communist country.

Show me a prosperous country that doesn't have a well functioning banking sector. Or do you want workers cooperatives like Cuba?

And no I do not work with HSBC.

And no I'm not a banker.

HSBC are just the leper with the most fingers.

Don't believe the hype, they're all parasites.

Edited by Constable
Link to post
Share on other sites

In 2008 HSBC looked the most secure bank they hadn't resorted to the same fraudulent lending as other banks. For years they had probably missed out on profits by running a tighter ship. In 2008 they should have got their reward when the other banks failed and they got more business in a properly regulated industry. But look what happened - the poorly run banks swept their bad debts under the carpet so in the UK crime pays. Nothing has changed about our regulation since.

I think they are probably leaving because they have been driven out by corruption in the UK. It's like the Chinese firm that tampered with their milk powder to cut costs and make more profits - once firms can do this they all have to or they cannot compete. HSBC are probably leaving not because they are worried about regulation etc but that they have decided there isn't going to be any. They can see what's happening in the UK - our politicians are in the pockets of big business and fraudulent lending is continuing (1in 3 mortgages still non-income verified) to support the housing ponzi scheme - perhaps they don't want to try compete in that market? Eventually there is going to be one major collapse (probably when Labour get back in). Why stay and be part of that?

Is it not simply that they were primarily an Asian based bank before they took over Midland and that most of their business is in the Far East.

While the loss of headquarters functions is a blow to the UK it should be noted that as with some of the UK bailout banks a good deal of the support facility has already been offshored. Most of the UK based branch business will stay in the UK as will the taxes (and the bailout liabilities) on the deposits.HSBC will still be liable for Corporation Tax on profits generated in the UK. As it currently pays almost none on its overseas earnings so the loss will be minimal. In fact CT yield from HSBC was just £265 million last year on European wide profits of £2,65 billion. Despite is massive size HSBC only accounts for 0.5 % of the Corporation Tax paid in the UK. By contrast before the Gulf of Mexico disaster BP paid £1 billlion in CT in 2008. As for the City of London one assumes that HSBC will retain a trading function just like many other overseas banks do in the UK simply because it is an important capital market so yield from stamp duty on shares etc is not going to change. This is not quite the significant change some are ramping upto be. Indeed, HSBC opaque accounts make it quite hard to determine exactly how may people it employees in the UK (although it seems to have depressingly regular redundancy rounds here).

Edited by stormymonday_2011
Link to post
Share on other sites
HSBC Denies Plan To Move HQ To Hong Kong

The bank said it has made "no decision whatsoever" on whether it would be relocating after 19 years in the City.

The response followed a report in The Sunday Telegraph which quoted an unnamed investor as saying: "We were told that a move (to Hong Kong) is more than likely."

Another shareholder told the paper that moving to Hong Kong "could deliver a 30% premium (to the share price) overnight".

HSBC has reportedly warned key investors that disappointing full-year results have strengthened the arguments for shifting their base to Hong Kong.

More relaxed regulations for financial institutions in the country would mean HSBC could cut costs and generate more profits by making greater use of its balance sheet, shareholders have apparently been told.

HSBC has hit out at the new UK bank levy - which would have seen them pay around £370m ($600m), if it was in place last year.

Any relocation from the City would be a blow to the Government, which is relying on private businesses to revive the economy.

An HSBC spokesman said: "No decision whatsoever has been made.

"London is ideally positioned as an international financial centre and we have been clear that it is our preference to remain headquartered here.

http://news.sky.com/skynews/Home/Business/HSBC-Denies-Reports-It-Is-Relocating-Its-Headquarters-From-London-To-Hong-Kong/Article/201103115946606?lpos=Business_Carousel_Region_4&lid=ARTICLE_15946606_HSBC_Denies_Reports_It_Is_Relocating_Its_Headquarters_From_London_To_Hong_Kong

I'm surprised how many want them to go. Soon there'll ne no one left to turn out the lights.... :ph34r:

Link to post
Share on other sites

snip

Show me a prosperous country that doesn't have a well functioning banking sector. Or do you want workers cooperatives like Cuba?

And no I do not work with HSBC.

And no I'm not a banker.

OMG..a bank thinks about possibly thinking of moving its HQ, and suddenly, we have no banking.

Look, banking is not hard....you take money in, you lend it out, meanwhile, keeping your capital ratios within a legally set amount.

DID HSBC have any off balance sheet vehicles?...what..none at all?...how on earth did they compete?...you see, ALL banks had to securitize through off balance sheet schemes....its how they could lever up from 8-10 times, to 30-70 times, and hide from the regulator.

Are you suggesting all the other bankers are lying by saying they HAD to do this to compete?

no, I didnt think so.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.