61–70 of 156 posts
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 ?
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But how? Surely it was worth more than that?
As anyone who has played Civ4 knows, everything is worth what its purchaser will pay for it. But yeah, they surely should have been able to find someone willing to pay 100-10000% more than that.
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 ?
So one company may bid saying they want to acquire X parts of the company but can not take on the advertising arm or the quality assurance part of the company; which means jobs losses etc. Another company may say we'll acquire all of the company but not the freehold properties the business owns.
The liquidation team then have to decide which bid offers the best likely outcome for the creditors/business. The £1 isn't technically what they're paying for the company, as they're taking on debt, leaseholds, pension funds etc. Their bid is technically tens or hundreds of millions depending on the situation.
Earlier quoted context omitted.
What is “free money” and how does a big bank print money?
They acquired a bunch of client assets for 1 GBP. Those client assets will generate money for them in the long term. For HSBC this is a great deal. For the clients too, come to think of it. On Friday the future of their money was uncertain, whereas today they can relax a bit because a big bank is backing them.
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HSBC made a deal too good to be true, that it sounds like it may be hiding something. Nobody can buy a profitable, stable, multi-billion company for 1 GBP, without a good cause. Yes, SVB UK is legally fenced, but in terms of management and daily practices, why wouldn't they have the same issues as their parent ?
It's not a multi-billion company, it a bank that has billions of loans and deposits (assets and liabilities). Yes, its a profitable bank but on order of magitude lower scale: > It also logged a pretax profit of £88 million ($106.5 million) in its last fiscal year ended December.
The company has gone insolvent because it's no longer profitable.
Earlier quoted context omitted.
What is “free money” and how does a big bank print money?
They acquired a bunch of client assets for 1 GBP. Those client assets will generate money for them in the long term. For HSBC this is a great deal. For the clients too, come to think of it. On Friday the future of their money was uncertain, whereas today they can relax a bit because a big bank is backing them.
Surprised Goldmans didn't buy them - and position it as Marcus for Startups.
Earlier quoted context omitted.
It's not a multi-billion company, it a bank that has billions of loans and deposits (assets and liabilities). Yes, its a profitable bank but on order of magitude lower scale: > It also logged a pretax profit of £88 million ($106.5 million) in its last fiscal year ended December.
You can't have a profitable bank that's insolvent. That doesn't make sense. The company has gone insolvent because it's no longer profitable.
Their Liabilities and assets outmatch their 'profit' by 100x.
They could be making a handy profit yesterday and be bancrupt today because the market has moved. Normal companies can't go bancrupt in one day