hsbc-covers-us-failure-with-ambitious-rights-issue

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, and its share price hit a 52-week low during London trading on Monday. At the end of the session the bank had lost 18.8% of its market value and closed at 399 pence.  ...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222