HSBC Does Not Need More Cash
http://www.iht.com/articles/2009/03/16/business/hsbc.php
European bank HSBC has reassured investors that it is not in need of any further cash. The bank said it is in a comfortable position with no bailout needed from the UK government even if the economic situation deteriorates further - the company’s shares appreciated by over 3.5% after this announcement. Having recently completed an $18 billion rights issue, UK-based HSBC is not expected to go back to the public to raise further funds, the bank’s Chief Financial Officer Douglas Flint has said. The bank’s US operations have incurred huge losses in recent months on account of the sub prime mortgage crisis. The announcement is reassuring at a time when the global banking system is in deep trouble and credit demand at an all-time low.
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