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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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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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HSBC is considering the pulling out of the "Retail Market" in the US, which is the branches, and for "common folk" if you will.  They would still keep a presence for the 1%, which includes Private Banking, and Wealth Management.  

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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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