HSBC slashes 6,100 U.S. jobs

[Joanne98]

Source: Reuters

LONDON (Reuters) - HSBC launched Britain's biggest rights issue on Monday, to raise 12.85 billion pounds ($18.3 billion) to help it overcome big losses in the United States and exploit the woes of weaker rivals.

Europe's biggest bank said it would shut most of its U.S. consumer lending business, cutting 6,100 jobs, but that it was ready for acquisitions in its traditional stronghold of Asia where many banks are pulling out to focus on their core markets.

HSBC said it would sell 5.1 billion shares at 254 pence each which is a 48 percent discount to Friday's close.

Shares in the bank were down 20 percent at 395p by 1111 GMT (6:11 a.m. EST), but they were still comfortably above the 254p issue price. HSBC's Hong Kong-listed shares were suspended.

"It's always difficult for a market that's feeling jittery to absorb 12.5 billion of new stock," said Jane Coffey, head of equities at Royal London Asset Management which is HSBC's 24th largest shareholder according to Thomson Reuters data.



Read more: http://www.reuters.com/article/newsOne/idUSTRE52104W20090302

[JMizzo]

1. HSBC and Household

This is bad news for the people that work for HSBC. I was one of those people, I was just lucky to be let go 6 months ago during one of the most recent rounds of "Branch Optimization." What a great set of words that sounds so good, but it means that we are closing branches and eliminating jobs. Well this news is great for the lower income brackets. HSBC and Household (Beneficial Loan and HFC) took advantage of customers in a real, real way.

They hired us before getting experience, much like Boiler Room. They don't hire loan officers, they make them. It took me till right before I was let go to realize what I was doing was completely wrong. I am about as liberal/progressive as they get. What they taught us was to paralyze the customer with fear and concepts that they dont understand. Now that sounds terrible, but I thought I was just being real with customers, making sure that they really did know the position they were in.

I read Al Gores Book, "The Assault of Reason," and it details how fear paralyzes reason and rational thought. I realized what the company was trying to do is get these customers so fearful about their current and future situation that they can not make a rational decision. They called this making the emotional connection, or E-Link for a corporate buzz word.

Since the day that I was let go with the company, I have felt so much better as a person. These people at the top only cared about making money, at any cost. They would make loan officers work way more than what they are paid for, and also torn apart by managers when you decide that ripping this particular customer off is not what should be done. It was all about the sale for these people, and it led to this. Greed, Deception, and Faulty business practices has cost many people their jobs, and many Americans their homes. HSBC and all banks should be investigated. Its about time our country decided that the need of the Human Individual is way more important than any business.

I am sorry to those that have lost their jobs. Today is a very tough day. All I can tell you is that you were handed the largest blessing in the world today, your conscience. Day after day you will feel better, and be a better person.

Sorry for the length of the rant, but I feel for everyone involved, with the exception of shareholders. You deserve what you got for investing in a company that made their money taking advantage of people.

For more information about how hsbc (beneficial and HFC)operate, check you http://www.householdwatch.com. Thanks to all who read.

[Blue Hen Buckeye]

2. Any information on how this effects their US credit card business?

They have a lot of employees in that area here in Delaware. They also own what used to be or still is Marine Midland bank.

[sarcasmo]

3. Glad I closed my two cards when they wouldn't lower my rates.