They have been colluding with accounting firms to overstate their assets. Pretty much a fact. £800bn worth of garbage. The bank is loaded with the bad assets of the collapse in 2008 2009, the bank has absorbed so much ****e and the likes of KPMG and PWC ect are accounting a cent in the dollar worth in assets that are actually worth nothing. FRAUD. Error, I meant 80 billion overstated assets not 800 billion. Still a few quid
92 billion actually http://www.bloomberg.com/news/2014-...ate-assets-by-92-3-billion-forensic-asia.html
I cannot stand banks personally. I really dislike the way what we earn is so controlled by them and heavily taxed by the government. We are well and truly slaves to the system and people who cannot see that choose not too. My mum works for Barclays ironically.
Who's to say whether assets are overstated or not, probably all banks assets are, but fact remains its one of the most profitable banks in the world. It doesn't rely on wholesale markets like many other banks have done and so didn't require a bailout before and are unlikely to in the future. I'd be a lot more worried if my money was in Lloyds or Barclays. Take a look at the relative share prices and I think that will tell you all need to know about its position compared to the other UK based banks.
Sisu.. there may be another conspiracy hiding behind your sofa. Have you checked. Deposits up to 80k are guaranteed by the government to avoid another Northern Rock situation. All the banks pay into the guarantee fund. It's similar to the fund insurers have to pay into for all the uninsured drivers.
HSBC are insolvent. Their liabilities exceed their assets. No drastic problem with liquidity as they can operate but solvency is another matter. Remember all of the banks made "profits" Even RBS. I can make profits if I don't pay my bills I don't think profits are all cash, asset price increase would be called profit I think If a bank has all it's worth in assets yeah. How exactly does everyone take out their cash? Their entire financial dealings are based upon the solvency of the bank. This is why they will let you electronically move cash but will not give you hard cash. They make profits. But I guess in a way it's like me not paying my bills and calling my wages profits. I think, not an expert, that if a bank has a trillion in deposits and assets worth a trillion they are barely solvent. That leaves the bank with no actual cash and it operates off of what comes through the door or what it generates. The drug laundering operation ensured the bank always had billions flowing through the bank, once the bank has 20 million from a cartel deposited the bank can go use most if not all of that cash to loan out, pay debts, salaries and bonuses share holder dividends amongst other things, as long as it's assets cover all deposits and debts and it has hard cash that's all good and well, if the assets are overstated and the bank is using incoming cash to operate then the assets do not cover what the bank owes to whatever, depositors and so on. When a government guarantees deposits and bond holders it means you are guaranteeing deposits and bond holders.
Are guaranteed by you. conspiracy theory, do you know what conspiracy means? It's financial institutions that have found HSBC overstated assets. And what if the government doesn't have the money which is the blooming case here anyways, they don't. RBS fraud, Barclays fraud, HSBC fraud and drug cartels. Yep, all conspiracy
I see our favourite conspiracy theorist is back out in full force. Don't know if you understand how the banking system works but of course if everyone chose to withdraw their money then every bank in the world would have cashflow problems. Im sure the article on the bbc is more just a story about people being frustrated thay they cannot withdraw their own cash out without evidence.
Barclays, RBS CitiGroup, HSBC, Bank of America ect ect. Doesn't matter, all the same scam. Osborne and Cameron along with Mark Carney are wrecking the UK economy and lying through their teeth. record numbers hitting food banks. RBS targeting viable businesses for their valuable assets. Services privatised and the ones left butchered. Councils left with little choice but to milk the **** out of everyone. Barclays rigging rates. George Osborne and the Royal Mail fiasco, which was essentially rewarding his rich cronies. We have had the same thing happen in Ireland in the last 3 years. We just about managed to save our forests from being sold off, barely through uproar over it by the public. The EU literally dictates the Irish economy 15 suicides a day. I mean kids are literally going hungry and Cameron gives himself a raise, Austerity my ****ing ****ing bollocks. Sad state of affairs mate. Meanwhile Bono is sticking his ****ing midget tax dodging face into a camera telling us the business world needs to be more ethical.
I didn't read the BBC article. I think maybe instead of wondering, go read something, I recommend please log in to view this image
I find the apparent reassurance that the government's guarantee gives people surprising really. The government has said it will give the bank your money so the bank can give you back your money. Is that's what has people's mind at rest?
I don't think that is correct actually. HSBC was quite sensible in the years leading up to the financial crisis as Stephen Green (chairman at the time) predicted it was coming about 3 years before it did. As a result HSBC were holding far more in deposits than they had actually lent to borrowers whereas most other banks were lending more than they had and raised the additional funds in the wholesale markets. So if anything HSBC is one of the only UK banks which is technically solvent. Now the US fines (4-5 million dollars) equates to about 2 months profit and was already accounted for in last years profits, in other words its already been paid and the share price is around the same level as it was before the fine which means fund managers/investors are not concerned. That said the US thinks HSBC is too big to manage and wants to force HSBC to sell off parts of the business (which could include the uk arm of the bank) and are actively monitoring compliance and risk at the bank over the next few years. Any more cock ups they will be forced to break the bank up or have their license to do business in/with the US removed.
