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Hsbc Will Tomorrow Reveal A Record $16bn Of Bad Debts

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Guest grumpy-old-man

I wonder what % that equates to in comparison to NR though ?

this sub-prime malarchy is like an iceberg, 90% of it still underneath, when that bobs up to the surface it's going to be hilarious imo.

can't wait to see curry'n'chips declan spin the huge sub-prime figures yet to appear. :lol::lol:

there should be lots of awkward 'back to you' moments coming between him & bill turnip. ;)

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It's a big hitting amount to write-down/lose, but not so bad when weighed up against profits.

However, strong growth in Asia and other emerging markets is expected to have offset bad debts to lift group profits by as much as 10 per cent to around $25bn, with the dividend to be raised a similar amount.

HSBC have the vast diversity.... lets see how the building societies cope with asset price falls, having written mortgages and ok'd equity withdrawals at bubble levels. I haven't been stupid enough to buy property at these levels of the past 7 years... and likewise my money isn't saved with financial institutions where their main business is mainly only orientated on such lending.

And besides... HSBC could always impound the gold it looks after in it's vaults. Where do the building societies keep their depositors' gold?

dsc_0005_250.jpg

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I don't believe these figures for a second.

So they made ~$22 Billion profit last year, with no sub prime losses to offset.

This year they write off $16 billion in sub prime losses, and yet they still make more profit overall ?

Don't believe it for a second. If the credit crunch had been delayed for another year, and these write offs were yet to be included, they would be telling us they had made 38 billion of profits this year, an increase in profits of about 80% !!!

That is impossible. These figures are fudged. We all know it. And has been stated above the majority of these losses are still sitting there waiting to be announced. Scary times.

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http://business.timesonline.co.uk/tol/busi...icle3465223.ece

From The Sunday TimesMarch 2, 2008

Activist tells HSBC: drop US divisionJohn Waples and Iain Dey

THE shareholder activist Knight Vinke has presented Stephen Green, chairman of HSBC, with four options to sever ties with HFC, its troubled American banking business.

The proposals have been made in a series of private meetings between Eric Knight, who heads the activist-investor group, and Green, ahead of HSBC’s full-year results, which are due to be published tomorrow.

These results will show record profits of $24 billion (£12 billion) for HSBC, but they will be scarred by the bank’s huge exposure to America’s sub-prime mortgage crisis.

Knight believes that each of his four solutions would “build a firewall” around HSBC’s future exposure. The bank has been one of the largest losers from America’s mortgage meltdown, having lent money to thousands of homeowners with poor credit histories.

The most dramatic of the four options involves HSBC walking away from HFC, leaving its bondholders with $150 billion of debt.

This doesn't too jolly for attracting future business either.

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I think Jim Rogers said look out for Level 3 assets - where losses are hidden off the balance sheet, but will invariably come to light at some point. [Just like enron - but HSBC is not Enron famous last words].

This subprime primer presentation also shows how the figures are fudged http://www.slideshare.net/guestd5ab54/the-subprime-primer - note company in Caymen islands.

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Guest Charlie The Tramp
MUAHAHAHAHHAHAHAHHAHAHHAAA

http://www.bloomberg.com/apps/news?pid=new...id=a.Ei0LgQ4xyM

March 8 2007 (Bloomberg)

Earlier this week, Treasury Secretary Henry Paulson moved to calm concern over the subprime market by saying the losses are being contained and won't spill over to banks that make less risky loans

Just on the BBC News 24 ticker tape.

HSBC despite bad debts have still made a healthy profit. :P

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Juicy stuff. I`m starting to build a stock of baked beans now. Sixteen billion in LOSSES is a difficult one for a newscaster to just trip off their tongue and then link to another item! The sheeple will get a start. I think people are going to start pooping themselves very soon. Even the spin about still making profit doesn`t cut it after someone has said LOST Sixteen Billion, are you sure it is Billion? Oh my f*cking God!

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Guest Charlie The Tramp

http://news.bbc.co.uk/1/hi/business/7273739.stm

The firm's annual results out on Monday will show that the bad debt charge is mostly related to the crumbling US housing market and consumer blues.

But it is still thought profits will rise to $25bn, from $22bn the year before and it will raise its dividend.

So what`s the problem ?

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And besides... HSBC could always impound the gold it looks after in it's vaults. Where do the building societies keep their depositors' gold?

dsc_0005_250.jpg

Thanks for the pics of the vault we are working on it now, is it true that security is lax on Chinese holidays ? There are a few of them coming up.

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Just on the BBC News 24 ticker tape.

HSBC despite bad debts have still made a healthy profit. :P

Exactly.... they lose billions and still make a massive profit.

No wonder my savings account pays sweet FA.

The tossers milk money from us as though we were cash cows.... er...... :unsure:

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Guest Charlie The Tramp
Exactly.... they lose billions and still make a massive profit.

No wonder my savings account pays sweet FA.

Paying me 5.75% gross on my online saver, maximum holding of £50k can return £196 net per month. ;)

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Paying me 5.75% gross on my online saver, maximum holding of £50k can return £196 net per month. ;)

50k in silver would have net you around 15k YTD.

and it's only the beginning of March.

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Guest Charlie The Tramp
50k in silver would have net you around 15k YTD.

and it's only the beginning of March.

I had an ex customer who for every £1k he invested each week returned a 100% gross profit within the following 7 days, not Gold or silver, but complete junk. ;)

Sold his business started from scratch for £12 million. :)

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I had an ex customer who for every £1k he invested each week returned a 100% gross profit within the following 7 days, not Gold or silver, but complete junk. ;)

Sold his business started from scratch for £12 million. :)

and your point is?

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Guest Charlie The Tramp
and your point is?

If you don`t know what`s the point of me explaining.

TBF Gold and Silver are not the be all and end all of investment as I am getting the impression on this forum. :rolleyes:

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If you don`t know what`s the point of me explaining.

TBF Gold and Silver are not the be all and end all of investment as I am getting the impression on this forum. :rolleyes:

gold is relevant here because it is affected by the whole monetary policy that set houses on fire.

venture capitalists and unique business have nothing to do with hpc.

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Paying me 5.75% gross on my online saver, maximum holding of £50k can return £196 net per month. ;)

I have that "on line" account with next to nothing in it.... the little catch of paying you zero interest for any month you make a withdrawal can quickly make it less profitable than their normal savings account (unless you know you're going to have money in there for several years).

Last month the interest suddenly dropped... a lot. I mailed the manager to ask why and got told my 1% bonus had come to an end.... and although they couldn't offer me 1% again they could manage 0.75%!!

If I hadn't asked..... charlatans, the lot of them.

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Darn! With losses that big it was a no brainer for a stock price rise today!

HSBC HLDG (LSE:HSBA.L)

Last Trade: 768.50 p

Trade Time: 9:43AM

Change: 2.50 (0.33%)

Prev Close: 766.00

Open: 767.00

Bid: 768.50

Ask: 769.00

1y Target Est: 849.11p

Bad news is good these days.

HSBC HLDG (LSE:HSBA.L)

Last Trade: 777.00 p

Trade Time: 10:15AM

Change: 11.00 (1.44%)

Prev Close: 766.00

Open: 767.00

Bid: 776.50

Ask: 777.50

1y Target Est: 849.11p

up up up

Edited by Realistbear

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  • 297 Brexit, House prices and Summer 2020

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      • down 5% +
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