Monday, January 27, 2014
HSBC: its London unit has imposed restrictions on large cash withdrawals, citing a change in bank policy, to the ire of its customers. http://www.bbc.co.uk/news/business-25861717 However, there have been a series of unfortunate events of late at HSBC, that when taken together, have sparked bank-run fears on financial forums. http://www.zerohedge.com/news/2014-01-24/bank-run-fears-continue-hsbc-restricts-large-cash-withdrawals Eg. - last wk, Forensic Asia, a HK-based research firm issued a Sell on HSCB citing "questionable assets"on its balance sheet. The analysts involved reportedly worked at HSBC for 15 yrs and suggest that the giant bank could have overstated its assets by more than GBP50b. - in recent yrs, the bank has come under scrutiny from regulators for its lax controls against money laundering, and its FX traders were suspended follwoing a global probe into possible currency market manipulation.