Simi taichee?

[Darthrevan]

HSBC Bank on Verge of Collapse: Second Major Banking Crash Imminent

"HSBC is scrambling to manage a seemingly terminal liquidity crisis (a lack of hard cash) that could see the bank become the next Northern Rock – and trigger a bank crash. The analyst’s advice is for shareholders to sell HSBC investments, and customers to move their accounts elsewhere before the crash.

This from the Telegraph:

Forensic Asia on Tuesday began its coverage of Britain’s largest banking group with a ‘sell’ recommendation, warning the lender had between $63.6bn (£38.7bn) and $92.3bn of “questionable assets” on its balance sheet, ranging from loan loss reserves and accrued interest to deferred tax assets, defined benefit pension schemes and opaque Level 3 assets.

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

[Baal]

 

HSBC Bank on Verge of Collapse: Second Major Banking Crash Imminent

"HSBC is scrambling to manage a seemingly terminal liquidity crisis (a lack of hard cash) that could see the bank become the next Northern Rock – and trigger a bank crash. The analyst’s advice is for shareholders to sell HSBC investments, and customers to move their accounts elsewhere before the crash.

This from the Telegraph:

Forensic Asia on Tuesday began its coverage of Britain’s largest banking group with a ‘sell’ recommendation, warning the lender had between $63.6bn (£38.7bn) and $92.3bn of “questionable assets” on its balance sheet, ranging from loan loss reserves and accrued interest to deferred tax assets, defined benefit pension schemes and opaque Level 3 assets.

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

 

I really admire the way u can relentlessly dig things up. U probably would have done good in investigative journalism if not for our 154th & system at large.

[Watwheels]

Aiya, just close the account lor. They can't stop you bah?

 

Bring your money to other banks. This kinda business model can close shop.

[Kezg1]

http://uk.finance.yahoo.com/news/hsbc-faces-70bn-capital-hole-133705984.html

 

http://www.bbc.co.uk/news/business-25861717

 

Listeners have told Radio 4's Money Box they were stopped from withdrawing amounts ranging from £5,000 to £10,000.

 

HSBC admitted it has not informed customers of the change in policy, which was implemented in November.

 

The bank says it has now changed its guidance to staff.

 

New rules

Stephen Cotton went to his local HSBC branch this month to withdraw £7,000 from his instant access savings account to pay back a loan from his mother.

 

A year before, he had withdrawn a larger sum in cash from HSBC without a problem.

 

But this time it was different, as he told Money Box: "When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved."

 

Mr Cotton says the staff refused to tell him how much he could have: "So I wrote out a few slips. I said, 'Can I have £5,000?' They said no. I said, 'Can I have £4,000?' They said no. And then I wrote one out for £3,000 and they said, 'OK, we'll give you that.' "

 

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.

 

He wrote to complain to HSBC about the new rules and also that he had not been informed of any change.

 

The bank said it did not have to tell him. "As this was not a change to the Terms and Conditions of your bank account, we had no need to pre-notify customers of the change," HSBC wrote.

 

Frustrated customers

Mr Cotton cannot understand HSBC's attitude: "I've been banking in that bank for 28 years. They all know me in there. You shouldn't have to explain to your bank why you want that money. It's not theirs, it's yours."

 

Peter from Wiltshire, who wanted his surname withheld, had a similar experience.

 

He wanted to take out £10 000 cash from HSBC, some to pay to his sons and some to fund his long-haul travel plans.

 

Peter phoned up the day before to give HSBC notice and everything seemed to be fine.

 

The next day he got a call from his local branch asking him to pay his sons via a bank payment and to provide booking receipts for his holidays. Peter did not have any booking receipts to show.

 

The following day he spoke to HSBC again and this time, having examined his account, it said he could withdraw the £10,000.

 

Belinda Bell is another customer who was initially denied her cash, in her case to pay her builder. She told Money Box she had to provide the builder's quote.

 

Customer protection

HSBC has said that following customer feedback, it was changing its policy: "We ask our customers about the purpose of large cash withdrawals when they are unusual and out of keeping with the normal running of their account. Since last November, in some instances we may have also asked these customers to show us evidence of what the cash is required for."

 

"The reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime. However, following feedback, we are immediately updating guidance to our customer facing staff to reiterate that it is not mandatory for customers to provide documentary evidence for large cash withdrawals, and on its own, failure to show evidence is not a reason to refuse a withdrawal. We are writing to apologise to any customer who has been given incorrect information and inconvenienced."

 

Money Box asked other banks what their policy is on large cash withdrawals.

 

They all said they reserved the right to ask questions about large cash withdrawals.

 

But none of them said they would require evidence of what the money was being used for before paying out.

 

Douglas Carswell, the Conservative MP for Clacton, is alarmed by the new HSBC policy: "All these regulations which have been imposed on banks allow enormous interpretation. It basically infantilises the customer. In a sense your money becomes pocket money and the bank becomes your parent."

 

But Eric Leenders, head of retail at the British Bankers Association, said banks were sensible to ask questions of their customers: "I can understand it's frustrating for customers. But if you are making the occasional large cash withdrawal, the bank wants to make sure it's the right way to make the payment."

 

Money Box is broadcast on Saturdays at 12:00 BST on BBC Radio 4 and repeated on Sundays at 21:00 BST. You can listen again via the BBC iPlayer or by downloading Money Box podcast.

 

What has your experience been of trying to withdraw a large sum of cash from your bank? Let us know your views.

 

Haha..drawing own money also need to give reasons..still not to bad.

What about cannot draw from your own $$ FUND...sound familiar....c*f

Edited January 26, 2014 by Kezg1

[Vid]

Got a thread on this liao

 

http://www.mycarforum.com/topic/2692850-simi-taichee/

 

But your title is much clearer

[Windwaver]

Frankly those questions sound a little too detailed

[Viceroymenthol]

HSBC faces £70bn capital hole, warn Hong Kong analysts

 

By Harry Wilson | Telegraph Thu, Jan 16, 2014 13:37 GMT

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Companies:

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PRU.F 15.21 -1.035

Research firm Forensic Asia calculates that HSBC has overstated the value of the assets on its balance sheet by more than £50bn

HSBC could have overstated its assets by more than £50bn and ultimately need a capital injection of close to £70bn before the end of this decade, according to an incendiary report published by a Hong Kong-based research firm .

Forensic Asia on Tuesday began its coverage of Britains largest banking group with a sell recommendation, warning the lender had between $63.6bn (£38.7bn) and $92.3bn of questionable assets on its balance sheet, ranging from loan loss reserves and accrued interest to deferred tax assets, defined benefit pension schemes and opaque Level 3 assets.

The brokers note is written by two of its senior analysts, Thomas Monaco and Andrew Haskins .

Mr Monaco is a former senior bank examiner at the Federal Reserve Bank of New York and previously worked as a fund manager at FrontPoint Partners, the hedge fund that spotted the US subprime bubble. As well as this, he has also spent a decade as a banks analyst at various leading investment banks.

Mr Haskins previously worked at HSBC for 15 years, mainly as a telecoms analyst, and also co-ran Japanese bank Mitsubishi UFJs Hong Kong-based research team.

In the report, the analysts apply what they describe as a moderate stress test to the balance sheets of HSBCs major subsidiaries. From this analysis they conclude that even using a low-end estimate, the assets of the banks Hong Kong division, for instance, are overstated by about $15bn, while those of its UK subsidiary could be overvalued by $17bn.

Taking the analysis further, the report sets out the impact of incoming Basel III capital rules and says HSBC could be required at a minimum to raise close to $60bn in new capital by 2019 and potentially as much as $111bn.

In our view, HSBC has not made the necessary adjustments, during the quantitative easing reprieve. Rather, it has allowed legacy problems to linger as new ones in emerging markets gather pace. The result has been extreme earnings overstatement, causing HSBC to become one of the largest practitioners of capital forebearance globally. This charade appears to be ending, given how few earnings levers remain besides selling off core elements of the franchise and the stringencies of Basel III compliance, wrote Forensic Asia.

The broker adds: While having stated capital ratios well above peer averages is all well and good, HSBCs stated capital ratios would appear to be nothing more than a mirage if our analysis is correct.

Even under current capital rules, Forensic Asia estimates that its valuations of HSBCs group and subsidiary balance sheets suggests the bank has a current capital shortfall of $45.1bn.

The report adds the workings do not include probable litigation costs linked to various claims on the bank, which they see coming in at no less than $10bn.

HSBC, Britains biggest bank by market capitalisation and total assets, is also reckoned to be the UKs best capitalised major lender, with a tier 1 ratio of 12.8pc, well above the minimum required by the Prudential (Frankfurt: PRU.F - news) Regulation Authority.

Most analysts rate HSBC shares a 'buy', arguing the bank has plenty of excess capital. Deutsche Bank (Xetra: DBK.DE - news) reckons the lender has $500bn in excess deposits and liquidity and will benefit strongly when interest rates rise.

Simon Maughan, head of research at OTAS Technologies, told CNBC : If we look at the credit market and implied volatility on HSBS shares, its significantly less than the European bank averagewhether its equity, credit or option markets, theyre not concerned by this story.

What Tom [Thomas Monaco] is saying is HSBC has surplus capital but under his stress test environment, that disappearswell, thats kind of what surplus capital is there for in the first place.

Secondly hes saying they havent used the period of QE to dispose of legacy assets. Its precisely because of HSBCs capital strength that they made the decision to hold onto those legacy assets and get a better price for them when they matured ... I dont think that its something major shareholders, certainly the ones we speak to, are concerned about.

HSBC declined to comment.

[Felipe]

just wondering if hsbc collapse and those with their loans, does it mean no need pay?

[Kusje]

just wondering if hsbc collapse and those with their loans, does it mean no need pay?

 

I'm sure their creditors will come after you. Unless all records are burned and destroyed!

[Celicar]

Huh? Why would the creditors have access to HSBC's record of debtors? And what rule will be applied to determine which creditor get which debtor's record?

 

 

I'm sure their creditors will come after you. Unless all records are burned and destroyed!

 

[Porker]

HSBC faces £70bn capital hole, warn Hong Kong analysts

 

I wonder which bank will buy HSBC should it really collapse.

[Kyrios]

 

I wonder which bank will buy HSBC should it really collapse.

Wow will this trigger any financial crisis just like Bear Stearns, Merril Lynch?

[Mcf777]

it';s time to withdraw all the FD from the HSBC.

 

Bank : Why are you withdrawing all the FD?

Customer : I scare your bank close shop.

 

I have never like this bank

Edited January 26, 2014 by Mcf777

[Yeshe]

 

I wonder which bank will buy HSBC should it really collapse.

 

SG Inc.? [laugh]

[Nullifi3d]

This kind of news perpetuated by layman understanding of what is actually going on just doesn't do anyone any good.

 

Do these people know the consequences of a bank run? Even if it involves a bank with significant reserves? I'm pretty sure there are loads of educated people on this forum but at the end of the day some of you sound like little kids whose parents told you a fairy tale.

 

And for the record, i have a savings account with HSBC.

Edited January 26, 2014 by Nullifi3d

[Count-Bracula]

ahhhh....thats the way! We should also shout....wan xuei wan xuei....wan....wan xuei!

Xuei sounds like sway. You know your pin yin or not? .. . . oh I see.

[Mockngbrd]

Anton cases fault!!!

[Evillusion]

Xuei sounds like sway. You know your pin yin or not? .. . . oh I see.

sori hor...i dont know my pin yin...to me xuei....sway sounds the same and i think down here its the same .....hahaha.