HSBC covers US failure with ambitious rights issue

HSBC closes its US consumer finance unit and announces plans to raise $17.7 billion to fund growth and strengthen its capital base.

HSBC is trying to turn the tables on its critics with a bold 12.5 billion $17.7 billion rights issue net of expenses and plans to close its loss-making consumer finance unit in the US. The fresh funds will strengthen its capitalisation and enable it to win market share from its weakened multinational rivals, the bank claims, while closing the consumer finance operation will stop the flow of losses once and for all.  

Investors were not impressed, however,...

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