HSBC (HSBC) is currently exploring the options of selling its large corporate offices in London, New York, and Paris. The company is pursuing these options to avoid taking federal aid from the British Government unlike other large British banks Lloyds (LLG) and Royal bank of Scotland (RBS). HSBC has already raised $12.5 billion through the sale of extra shares yet need more capital to pay off the $15.5 billion pre-tax loss in its North America Division and its $53 billion it has set aside to cover the companies bad assets over the next several years. Despite the fact that timing is awful to try and sell real estate the company is confident that they will be able to find a buyer.
In this case I respect HSBC’s decision to sell its large retail holdings which are valued at around $4 billion. For once a bank is taking accountability and not relying on the government to bail them out. My opinion is more banks need to cuts costs and lose there luxurious offices in order to pay off debt. The government is not a lifeline in which we can rely on. Putting the burden on the taxpayers should not be an option. This is a shocker as only last year I was interning on the 14th floor of HSBC Global Headquarter in Canary Wharf, London.