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[h=1]GOVERNMENT SEES STANDARD CHARTERED AS RISKY?[/h]
Post date:
1 May 2015 - 2:31pm
The Hong Kong Monetary Authority says that it “takes a positive attitude should HSBC consider relocating its headquarters back to Hong Kong”, where it is the largest bank.
HSBC WEIGHS MOVE FROM LONDON HSBC was established in Hong Kong 150 years ago and moved its headquarters to London in 1993. Now it is considering a return trip. Citing changes in regulation, HSBC says it will study whether to relocate its headquarters out of London, reports Chad Bray in DealBook.
A big part of the issue is Britain’s bank levy, which was instituted in 2010 to help pay for the government’s financial crisis bailouts. While all banks operating in Britain pay the tax, Mr. Bray writes that “The levy hits British-based banks particularly hard, however, as they are taxed on their global balance sheets.” HSBC’s announcement could become a political issue as Britain nears a general election on May 7.
(NYT’s Dealbook)
Hongkong Bank is a HK quitter. It moved to UK in 1993, juz before PRC regained HK in 1997. But all is forgiven.
Both HK have S’pore have similar sized economies (about US$300bn in GDP).
HK is willing to be lender-of-last-resort to HSBC a bank with US$2,6 trillion in assets, despite HSBC being almost 9 times bigger than HK’s GDP.
Yet the S’pore authorities, it’s clear from hints in the FT, are unwilling to have StanChart HQed here (only 1.1 trillion in assets), despite Temasek being the largest single shareholder (which will benefit from reduced tax: HSBC shares were up 6% in HK yesterday), and despite many of StanChart’s operations being run from here.
The PAP administration is afraid of another of Temasek’s investments blowing up? After all StanChart is not as safe as our local banks: https://atans1.wordpress.com/2015/03/25/stanchart-not-as-solid-as-local-banks/
It also has weaker capital ratios than HSBC and the big US banks. So weak that the new CEO is expected to call for yet another massive rights issue.
Remember LKY and his bank investments that are forever? OK 30 yrs leh) Even longer than Buffett’s investments, he once said
In 2007/2008, our SWFs’ bot into UBS (GIC), Citi (GIC) and Merrill Lynch (Temasek) in a big way that ST characterised then as showing S’pore was a tua kee investor.
We lost serious money in two of the 30-yr investments by 2009.
— Estimate of Temasek’s realised losses on ML and Barclays:
https://atans1.wordpress.com/2010/08/04/swee-say-said-that-gd-temasek-lost-billions/
— Estimate of GIC’s loss on UBS as at 2011:
https://atans1.wordpress.com/2011/07/26/gic-not-reported-in-st-cna-or-today/
(BTW, Temasek’s 2012 purchase of Credit Suisse mandatory bonds:
https://atans1.wordpress.com/2012/07/22/third-time-lucky-temasek/)
Cynical Investor
*Article first appeared on https://atans1.wordpress.com/2015/04/28/govt-sees-stanchart-as-risky-lky...
Post date:
1 May 2015 - 2:31pm
The Hong Kong Monetary Authority says that it “takes a positive attitude should HSBC consider relocating its headquarters back to Hong Kong”, where it is the largest bank.
HSBC WEIGHS MOVE FROM LONDON HSBC was established in Hong Kong 150 years ago and moved its headquarters to London in 1993. Now it is considering a return trip. Citing changes in regulation, HSBC says it will study whether to relocate its headquarters out of London, reports Chad Bray in DealBook.
A big part of the issue is Britain’s bank levy, which was instituted in 2010 to help pay for the government’s financial crisis bailouts. While all banks operating in Britain pay the tax, Mr. Bray writes that “The levy hits British-based banks particularly hard, however, as they are taxed on their global balance sheets.” HSBC’s announcement could become a political issue as Britain nears a general election on May 7.
(NYT’s Dealbook)
Hongkong Bank is a HK quitter. It moved to UK in 1993, juz before PRC regained HK in 1997. But all is forgiven.
Both HK have S’pore have similar sized economies (about US$300bn in GDP).
HK is willing to be lender-of-last-resort to HSBC a bank with US$2,6 trillion in assets, despite HSBC being almost 9 times bigger than HK’s GDP.
Yet the S’pore authorities, it’s clear from hints in the FT, are unwilling to have StanChart HQed here (only 1.1 trillion in assets), despite Temasek being the largest single shareholder (which will benefit from reduced tax: HSBC shares were up 6% in HK yesterday), and despite many of StanChart’s operations being run from here.
The PAP administration is afraid of another of Temasek’s investments blowing up? After all StanChart is not as safe as our local banks: https://atans1.wordpress.com/2015/03/25/stanchart-not-as-solid-as-local-banks/
It also has weaker capital ratios than HSBC and the big US banks. So weak that the new CEO is expected to call for yet another massive rights issue.
Remember LKY and his bank investments that are forever? OK 30 yrs leh) Even longer than Buffett’s investments, he once said
In 2007/2008, our SWFs’ bot into UBS (GIC), Citi (GIC) and Merrill Lynch (Temasek) in a big way that ST characterised then as showing S’pore was a tua kee investor.
We lost serious money in two of the 30-yr investments by 2009.
— Estimate of Temasek’s realised losses on ML and Barclays:
https://atans1.wordpress.com/2010/08/04/swee-say-said-that-gd-temasek-lost-billions/
— Estimate of GIC’s loss on UBS as at 2011:
https://atans1.wordpress.com/2011/07/26/gic-not-reported-in-st-cna-or-today/
(BTW, Temasek’s 2012 purchase of Credit Suisse mandatory bonds:
https://atans1.wordpress.com/2012/07/22/third-time-lucky-temasek/)
Cynical Investor
*Article first appeared on https://atans1.wordpress.com/2015/04/28/govt-sees-stanchart-as-risky-lky...
