HSBC member of the selected TBTF Club may have to ask its partners for some help sooner than later. Apparently (as per Forensic Asia) the UK bank has not been able to fully benefit from ZIRP and QEternity to fully inflate and dump its assets and could be quite vulnerable to any market shock which would translate into a sizeable capital shortfall.
it is true that strange signs have been appearing the last few months and as we say…. there is no smoke without fire. Now… being a large global player, HSBC has the potential to become the Iceberg Tilter of the TBTF Club but this does not mean that all the worldwide activities would go under. HSBC is present in many markets…including emerging markets which would represent good assets for a restructuring in case needed.
follows a few links