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HSBC Chairman Stephen Green said in an interview published Friday that banks should “stare down” hedge fund investors who’ve been seeking a more active role in company strategy. It’s not enough to have 1 percent equity and feel you have the right to condition the choices of a big financial institution,” Green said. Green is talking about Knight-Vinke. Green’s comments should interest investors and shareholders, because facts stated by Knight-Vinke relative to HSBC Finance (HFC) are very important.
In a published letter Knight-Vinke asked: “How does the Board expect HFC to refinance the $80 billion of debt that is due to be repaid over the next three years in light of what is happening in the U.S. subprime market? Does the Board not see that, without substantial (and as yet unquantifiable) further support from the HSBC Group, the $150 billion of debt now on HFC’s balance sheet cannot be supported by HFC’s current and future cash flow? Is the Board not aware that, by its own admission, the market value of HFC’s consumer loan portfolio is US$27 billion less than the value at which these assets are carried on its balance sheet? – see the full letter here -
This article, HSBC Finance HFC cannot be supported by cash flow, is just one of our articles from our Bank Horror Stories, HSBC Secrets Part 3
Bank Horror Stories monitors banking problems and customer complaints and has done so since 1999. Writers hold no stock positions. Some material is used under the fair use copyright act.
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