HSBC turns down financial support from Government

| January 20, 2009 | 0 Comments

Banking giant HSBC has rejected the Government’s offer of emergency funding.

The UK’s largest banking group said it had not sought capital support from the UK Government and cannot envisage circumstances where such action would be necessary.

Unlike other banks, HSBC has been relatively unaffected by the credit crisis due to its focus on emerging markets business. With nearly 10,000 office in 85 countries, the bank has a significant presence in markets such as Asia and Latin America.

HSBC also declined the Government’s help last autumn when it injected £37 billion into three of the country’s largest banks. £20 billion was pumped into RBS, while a further £17 billion went to Lloyds TSB and HBOS.

HSBC joins Barclays in making every attempt to retain independence by not having to be controlled by the Government.

HSBC is due to issue its full-year results in March.

Yesterday’s bailout package failed to boost banking shares after Royal Bank of Scotland lost 11%, having plummeted nearly 70% yesterday.

Lloyds Banking Group (the result of the merger between Lloyds TSB and HBOS) lost over 30% of their value today, while Barclays shares closed 17% lower.

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