LONDON: HSBC, Europe’s largest bank, will tomorrow announce the closure of its troubled US mortgage lending operation to new business alongside plans to cut its dividend and raise more than £12bn in a deeply-discounted rights issue. The developments will underline the depth of the international financial crisis and, in the context of HSBC’s substantial operations in Asia, raise questions about the deteriorating health of the global economy. HSBC, led by Stephen Green, its executive chairman, will say that it is drawing a line under the continuing problems of HFC, the consumer finance operation in the US which has racked up billions of pounds in losses since it was acquired six years ago, by putting it into run-off. The bank plans to announce a two-for-five rights issue, underwritten by Goldman Sachs and JP Morgan Cazenove, which will be priced at about 300p, a discount of more than 40pc to Friday’s closing price of 491.25p. It will also cut its dividend by at least a third, according t...
Comments
Post a Comment