HSBC, the big global bank that’s remained relatively unharmed and out-of-the-limelight, is off about 20% pre-market on news that it plans to raise $18 billion, cut 6100 jobs and and pull back from the US market. It’s not a total retreat from America — it just doesn’t want to do standard bank things, like auto loans or consumer loans.
The company is always mentioned as a possible saviour or acquirer of ailing businesses, though so far it’s been pretty cautious. However, its CFO says the new capital raise will allow it to take advantage of opportunities that “will present themselves”. So perhaps that means deals.
The capital raise will come via a right-issue allowing all shareholders to up their stake, but at a 47.5% discount to Friday’s closing price.
Business Insider Emails & Alerts
Site highlights each day to your inbox.