What is the money for?2 March, 2009, 3:28. Posted by Zarathustra
Tags: HSBC, RBS
From Financial Times:
HSBC executives are likely to bill the rights issue as a positive move to give the bank a renewed competitive advantage over rivals after the government-backed recapitalisations of lenders such as Royal Bank of Scotland and Citigroup.
They will also suggest that the extra capital gives the bank the firepower to pursue potential acquisitions amid the fallout from the financial crisis. HSBC is seen as a leading candidate to buy the Asian assets of RBS, which were formally put up for sale last week.
HSBC declined to comment.
Does it make sense for HSBC to buy RBS Asian assets? HSBC already has very strong presence in Asia, why does it need to buy RBS? Unless there are a very strong client base for RBS in Asia, it doesn’t really make sense for HSBC to buy RBS.