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HSBC to Buy UK Arm of Silicon Valley Bank

bbc.co.uk

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Re: HSBC to Buy UK Arm of Silicon Valley Bank

#131

Post by jalapenos »

joosters wrote: post #51
mytailorisrich wrote: post #20

Earlier quoted context omitted.

If the BoE took them over and HSBC bought them for £1 you can be sure that those numbers do not reflect the current situation.

Oddly, it had been reported that the bidding process for the bank was 'competitive' and that there were several interested parties. I can't see how that could have been true if the final price was a token £1 ?

I imagine it was "which one of you wants this steaming mess?".

HSBC: [sigh], ok fine why not

The token is just to make the sale contract binding

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#132

Post by russnewcomer »

shapefrog wrote: post #120
russnewcomer wrote: post #117

Earlier quoted context omitted.

My father, controller at a mid-sized regional bank, was involved in a couple of these when I was growing up, and worked at the FDIC as an examiner in the 80s. My memory from the last takeover he did shortly after this NPR article was that the FDIC had given him the vaguest of hints that his bank was on a list that could be selected to takeover a bank in the next month or so, then called him on a Wednesday afternoon,…

> got selected was also that they ran the same backend banking software It can not be overstated just how important this would have been. These backed systems are complex, expensive and horrible. Implementing a (mondern) new backend at a bank is a multi year multi $10million process.

My dad's bank switched to $COMPANY in the late 90s and to this day, when I run into people who work for them (which happens from time to time since they have offices in my city), I have to suppress my inclination to dislike them, since it was such a brutal two years for our family when dad was working 70+ hours unendingly.

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#133

Post by robjan »

sofixa wrote: post #109
robjan wrote: post #36

Earlier quoted context omitted.

HSBC is a British bank with most of the profits being made in Asia (specifically Hong Kong). They may be selling off their unprofitable subsidiaries but the UK operations are pretty stable.

> HSBC is a British bank with most of the profits being made in Asia (specifically Hong Kong) Funnily that's where their name comes from - Hongkong and Shanghai Banking Corporation Limited, HSBC for short (it's now the official name, HSBC does no longer stand for anything, probably to lessen the obvious imperialistic past in it's name).

The full name is still printed on most of our banknotes (alongside Bank of China and Standard Chartered who issue a smaller number of notes). I think it's just the parent company who deleted the original meaning.

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#134

Post by freeone3000 »

mattmanser wrote: post #106
Teandw wrote: post #74

Earlier quoted context omitted.

I'm not sure you understand what's happening here or the basics of business and liquidation. "Normal companies can't go bankrupt in one day" - They didn't go bankrupt. They went into liquidation. Massively different thing. You can have a company with billions of quid saved up in the bank that goes into liquidation. Liquidation is quite common and happens daily in the UK to 'normal' companies. Companies that were prof…

To me it sounds like you don't understand them either? What you seem to be talking about about is cashflow insolvency. You can have a wildly profitable contract that pays in 120 days, but have no cash on hand to pay debtors. The work you are doing is profitable, you just can't afford to pay your debtors right now. Profit != cashflow, that's why it's called cashflow insolvency instead of profit insolvency. You seem to…

The money that they lose is going to be assessed on all FDIC banks. It doesn't come out of general government funds. So it'll probably be paid for by increasing bank fees on customers.

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#135

Post by dan1234 »

sofixa wrote: post #109
robjan wrote: post #36

Earlier quoted context omitted.

HSBC is a British bank with most of the profits being made in Asia (specifically Hong Kong). They may be selling off their unprofitable subsidiaries but the UK operations are pretty stable.

> HSBC is a British bank with most of the profits being made in Asia (specifically Hong Kong) Funnily that's where their name comes from - Hongkong and Shanghai Banking Corporation Limited, HSBC for short (it's now the official name, HSBC does no longer stand for anything, probably to lessen the obvious imperialistic past in it's name).

IIRC, it stopped standing for anything when they moved the HQ to London in the 90s (following the takeover of Midland Bank), and it became HSBC Holdings plc.

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#136

Post by mrguyorama »

substation13 wrote: post #104
distcs wrote: post #101

Earlier quoted context omitted.

It is really sad to see comment threads like this that devolve into shallow and petty dismissals devoid of any actual content or substance!

Fair point, so I will flesh this out a bit. The typical pattern we see in PMQs every week is this: 1. Valid concern from the opposition 2. Rishi ignores the concern 3. Rishi says something about "the member from Islington North" 4. Jeering from the back benches (both sides) 5. Opposition moves on to another topic Or perhaps this: 1. Government back-bencher asks "Does the PM agree that we are doing a fantastic job on…

This is just what PMQs are. It's part of the system and not any parliament member specifically.

https://www.youtube.com/watch?v=CLSq1h7AvkE

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#138

Post by dan-robertson »

shapefrog wrote: post #121
dan-robertson wrote: post #108

Earlier quoted context omitted.

One point is that hsbc might not be acquiring all of the liabilities – they might mostly get customer deposits but not eg some unsecured loan or bond issue. Regulators could be ok with such an outcome because a bunch of businesses losing bank deposits may be seen as worse than a single company defaulting on its debt. Another is that SVB UK could be solvent so long as they don’t have to sell assets at a loss. Being pa…

> Being part of hsbc stops the assets needing to be sold at a loss Borrowing in the maket at 5% so you can keep the bonds paying 1% for the next 10 years might not seem like a "loss" but it is a loss.

For sure that’s a reasonable possibility. But even if this in particular is -ve, I think it could still be a good deal for hsbc for the reasons given above and below.

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#139

Post by mattmanser »

freeone3000 wrote: post #134
mattmanser wrote: post #106

Earlier quoted context omitted.

To me it sounds like you don't understand them either? What you seem to be talking about about is cashflow insolvency. You can have a wildly profitable contract that pays in 120 days, but have no cash on hand to pay debtors. The work you are doing is profitable, you just can't afford to pay your debtors right now. Profit != cashflow, that's why it's called cashflow insolvency instead of profit insolvency. You seem to…

The money that they lose is going to be assessed on all FDIC banks. It doesn't come out of general government funds. So it'll probably be paid for by increasing bank fees on customers.

According to the news reports the Fed are guaranteeing the loans, not the FDIC. I think you're talking about the stuff that they were originally saying over the weekend.

Re: HSBC to Buy UK Arm of Silicon Valley Bank

#140

Post by xen2xen1 »

jeromegv wrote: post #107
substation13 wrote: post #104

Earlier quoted context omitted.

Fair point, so I will flesh this out a bit. The typical pattern we see in PMQs every week is this: 1. Valid concern from the opposition 2. Rishi ignores the concern 3. Rishi says something about "the member from Islington North" 4. Jeering from the back benches (both sides) 5. Opposition moves on to another topic Or perhaps this: 1. Government back-bencher asks "Does the PM agree that we are doing a fantastic job on…

I don't know about the UK parliament, but the Canadian parliament is quite similar in political structure and the "debates" at the chamber are a bit of a clown show as well. Just someone doing a speech and zingers, the same side applaud, the other side boos, and it goes on and on for a few hours. If the population actually saw what was happening over there, they wouldn't be too impressed. The medias tend to only feat…

So the Canadian parliament isn't directly elected by the people, like the British one? That's what everyone says is the difference. Seems to make the parliament members more "hype men" than lawmakers.
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