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HSBC will devolve and focus on Asia


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HSBC breakup will turbocharge CEO’s Asian pivot

 

 

 

If HSBC’s selling its branches, who’s buying?

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Potential bidders might like what they see. HSBC Bank USA, which is based in Tysons, Va., has $164 billion in deposits — consisting mostly of low-cost core funding — and $67 billion in loans, according to data from the Federal Deposit Insurance Corp.

But the footprint might present some challenges. While more than half of the bank’s branches are in and around New York City, another 52 are in big West Coast markets. Others are located around Washington, D.C., and in South Florida.

The nature of the footprint could be hard for some banks to absorb, said Brian Klock, an analyst at Keefe, Bruyette & Woods.

“It would be easier for HSBC to sell it to someone like U.S. Bancorp who has operations [in California] and could add to what they’ve got in New York City,” Klock said. Banks that lack widespread networks “would have to figure out how to sell those [outlier] branches.”

 

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I asked HSBC on their website about leaving the U.S. All they said is "they don't comment about media speculation," and they appreciate me as a customer.

Until we see an actual press release from them, there's little to tell us what is true and what isn't.

Edited by Burgerwars
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HSBC conducts a soft promotion query on my Equifax credit report every other month. I was just invited to apply a few days ago. I am not saying that they will stay here, but common sense suggested that If you decide to eliminate yourself from the competition, why should you spend money to attract more customers, duh?

 

 

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2 hours ago, MP80 said:

HSBC conducts a soft promotion query on my Equifax credit report every other month. I was just invited to apply a few days ago. I am not saying that they will stay here, but common sense suggested that If you decide to eliminate yourself from the competition, why should you spend money to attract more customers, duh?

 

Assuming that, once again, they're going to be putting their US credit card portfolio on the auction block, it's in their interest to continue marketing their cards until they have a bidder locked in.  The last thing you want to be seen doing before selling a business is pulling resources from it.

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  • 1 month later...

Again, over the past couple of days there have been reports that HSBC will be announcing that they'll be leaving the U.S.  I've heard that before and before and before.  I'm not saying this will never happen, but every time a news source (such as Reuters) says this, I get a bit skeptical.  

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A few years ago when they started marketing cards again in the US to non checking account and investment customers, I don’t think they went hog wild with approvals to anyone with a pulse like they did pre 2008. If my hunch is correct, the portfolio should be solid in the big picture. Hopefully in turn, a decent bank will pick it up. 
 

With that said, I’m skeptical too. 

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  • 1 month later...
4 hours ago, Burgerwars said:

If HSBC is fleeing the U.S. market, why would they make announcements like this???

 

https://www.businesswire.com/news/home/20210401005046/en/HSBC-Bank-USA-Announces-Tara-Latini-as-Head-of-Wealth-and-Personal-Banking

 

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“As we strengthen our focus on international wealth management, her expertise in multiple markets around the world, particularly in Asia, will help improve our connectivity to a key HSBC region so that we can better serve our clients.”

 

This is catering to the 1% - likely those who have other wealth in nations that's primarily served by HSBC.

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It's all confusing, and this has been going on for the longest time.  I messaged HSBC about this, and they told me they don't comment on "media speculation."  They've told me that twice.  Then there's the media, like Reuters, saying HSBC is set to withdraw from the U.S., citing "a source familiar with the matter."  If they don't comment on media speculation, who from HSBC told the media in the first place that they're pulling out?  If HSBC told the media, then it's not speculation.  If they didn't tell the media, it's then media speculation.  Someone is talking out of both sides of their mouth.  😕

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  • 1 month later...

HSBC did announce that they're selling their east coast branches to Citizens Bank and their west coast branches to Cathay Bank.  The only U.S. retail bank customers they're keeping are their Premier and above customers, with at least $75,000 in deposits/investments.  HSBC will have about 20 - 25 "international wealth management centers" in the U.S.  The selling of their branches is scheduled to complete either late this year or in early 2022.

 

I'll be an ex-HSBC customer then.  It's not worth it to me to become a Premier client just to continue being a customer.  What's the point?  They're no longer serious about being a bank here.  I could swing putting $75,000 in HSBC, but to tie up that much money just to be a customer isn't worth it to me.  Good-bye HSBC.  

 

https://www.about.us.hsbc.com/movingforward

https://www.about.us.hsbc.com/news-and-media/hsbc-exits-us-mass-market-retail-banking

https://www.bankingdive.com/news/hsbc-sells-80-branches-to-citizens-bank-10-to-cathay-in-us-retreat/600900/

https://www.cnn.com/2021/05/27/business/hsbc-us-retail-banking-intl-hnk/index.html

 

 

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HSBC has encountered problems with credit card portfolios in the past, but they have resolved them. They re-established the credit card market in the United States, hoping to compete with the big banks, but HSBC messed up at the beginning, and its reputation was irretrievable. In addition, the recent conflict between Huawei and China caused their stocks to plummet by half of the company’s net worth, losing momentum every day since...
 
I applied for their pre-qualification offer, and because of a failed identity verification, I canceled their application. 

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Here's an email I just received about being dumped:

 

Dear Burgerwars,

Last year, we at HSBC Bank USA, N.A. set out on a journey to be able to better cater to our clients’ needs globally and from a wealth management perspective. You may have seen a recent announcement from us about the next phase of this plan. As a result of this new focus for HSBC in the U.S, we are streamlining parts of our retail bank. This decision was not made lightly but is necessary for us to best position the Bank for the future.

What this means for you
As part of this, some of our branches, clients and employees will be transitioned to another financial institution in the coming months. Your account(s) will be part of this transition. We understand this may be difficult news, however we’re confident your new financial partner will meet all of your banking needs. We’d like to take this opportunity to thank you for being a customer of HSBC.

Your accounts with HSBC affiliates
If you have accounts with HSBC Securities (USA) Inc., you will receive separate communications about these accounts. In the meantime, you can visit their linked pages at the website below.

Next steps
You have our commitment that we will ensure this is a seamless transition for you. For now, no immediate changes will be made to your account or services. It will be our priority to contact you when any change occurs and we’ll keep you updated with further details as they are made available. More information and FAQs can be found at us.hsbc.com/GoingForward.

If you have questions about your account(s), you can chat with us 24 hours a day, 7 days a week on the HSBC Mobile Banking App or at us.hsbc.com/chatwithus. If you prefer, give us a call at 1.800.975.4722 Monday through Sunday 7am – 12am ET. If you’re calling from outside the U.S. or Canada, please call 1.716.841.7212.

Sincerely,


Tara M Latini
U.S. Head of Wealth and Personal Banking

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11 hours ago, chicagorich said:

I got the same email. Already have a Citizens account, so guess it will get merged.

 

When stuff like this happens, usually a new account is created at the bank that acquired the other bank and accounts.  If you want the account merged with your current account, you'll probably need to transfer what's in it to the other account once things are complete.  

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6 hours ago, Burgerwars said:

 

When stuff like this happens, usually a new account is created at the bank that acquired the other bank and accounts.  If you want the account merged with your current account, you'll probably need to transfer what's in it to the other account once things are complete.  

I opened HSBC's online checking account about 15 years ago because they were paying a good checking account interest rate with no minimum. You could also do inter-bank transfers free--Citizens charges for that. HSBC nixed the higher checking account interest rate a few years ago and I never got around to closing the account. Since T-mobile just nixed their higher rate on checking, I guess my wallet will be two cards lighter.

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I was thinking one way to qualify for HSBC Premier is to transfer some security positions from a brokerage account to HSBC Securities. Not worth it. It's a crappy brokerage that still charges commissions of $11 per trade. You're much better off just being a regular peasant customer at Schwab or Fidelity, with no need for a $75,000 balance.

Edited by Burgerwars
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  • 4 months later...

I got a letter from HSBC today saying my checking account and credit card will be transferred to Citizens Bank next year. That surprised me because I live in Southern California, Cathay Bank is in Southern California, and Citizens Bank is in the northeastern U.S. After reading about HSBC again, their online accounts will be transferred to Citizens Bank. Since I opened the accounts online, I go there.

This is O.K. with me. I think Citizens is the better Bank.

Anyway, I'm just a peasant with no intention of becoming an HSBC Premier customer by keeping $75,000 in the bank.

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6 hours ago, Burgerwars said:

I got a letter from HSBC today saying my checking account and credit card will be transferred to Citizens Bank next year. That surprised me because I live in Southern California, Cathay Bank is in Southern California, and Citizens Bank is in the northeastern U.S. After reading about HSBC again, their online accounts will be transferred to Citizens Bank. Since I opened the accounts online, I go there.

This is O.K. with me. I think Citizens is the better Bank.

Anyway, I'm just a peasant with no intention of becoming an HSBC Premier customer by keeping $75,000 in the bank.

 

Wow, I only have the HSBC credit card (no banking) - I haven't received anything from them... yet.

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Again, over the past couple of days there have been reports that HSBC will be announcing that they'll be leaving the U.S.  I've heard that before and before and before.  I'm not saying this will never happen, but every time a news source (such as Reuters) says this, I get a bit skeptical.  

It's a fact. They are leaving.

They have already determined the two banks hat will absurd the assets that HSBC dumps. One is, IIRC, Citizens and the other is an obscure unknown bank in California.

HSBC is selling off all except for their Prime and Jade accounts. People with accounts in those categories will remain with HSBC.

Funny, but this is exactly what HSBC did about 15 years ago when they sold their portfolio to CapOne.


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Wow, I only have the HSBC credit card (no banking) - I haven't received anything from them... yet.

You will, don't worry. Unless, of course, you have their Premier MasterCard. Premier customers will remain with HSBC.


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