Banking Crisis: Opportunity in disaster… bought drowned bank for one dollar and made profit of $ 1.5 billion – hsbc says silicon valley bank buyout boosted profit by 1.5 billion dollar
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HSBC has given strong performance at a time when the banking sector is going through a crisis. In March, two big US banks, Silicon Valley Bank and Signature Bank, were drowned. Similarly, Switzerland’s bank Credit Suisse was also sold to UBS. Recently, another US bank First Republic Bank was seized by the regulator and its assets were sold to JP Morgan Chase. It is being considered as the biggest financial crisis since 2008. The reason for this is that in the coming days many more banks are also expected to fall prey to it.
benefit the most from asia
China’s insurance company Ping In has the largest stake in HSBC. The Chinese firm wants the bank to spin off its Asian business. Most of the bank’s profit comes from Asia only. This compensates for the loss in Europe and America. Ping In says this is not correct and the solution is to break up HSBC. This will give Asian investors a higher share in the profits. The proposal will be voted on at the annual general meeting in Birmingham on Friday. The bank has asked the shareholders to oppose it.
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