HSBC mulls bid for Lloyds and RBS assets
Share
HSBC has revealed it may bid for some of the assets that the state-aided Lloyds Banking Group and Royal Bank of Scotland will have to shed in order to meet EU requirements.
But chief executive Michael Geoghegan told reporters on a conference call today that he was concerned HSBC might be excluded from bidding in the Government’s drive to boost competition in the market.
According to reports by Reuters, he said: “HSBC would be interested in certain portfolios.”
But added: “We are somewhat frustrated that it would appear there may not be a level playing field in regard to this, in regard to who is eligible to acquire these portfolios.”
Geoghegan said HSBC is not a large bank in the UK and he hopes it will be allowed to bid for portfolios as he believes the bank has demonstrated it can run a business in a conservative and proper manner.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (9)
david stone | 10 Nov 2009 2:04 pm
lol - not a large bank!
Government is quite right in trying to create more competition.
Unsuitable or offensive? Report this comment
John Lacy | 10 Nov 2009 2:11 pm
If the government want to bring new players in to the market why would they even dream of letting HSBC bid for any enforced sales by Lloyds and RBS.
Or is this going to be just another cosy arrangement between the big players as the Labour retirees look for well-paid jobs after the next General Election?
Unsuitable or offensive? Report this comment
Dave Ricchardson | 10 Nov 2009 2:24 pm
They should not be allowed to even consider a bid. HSBC buying would reduce competition even further and their elitist approach to banking could further damage the industry.
Unsuitable or offensive? Report this comment
Anonymous | 10 Nov 2009 2:26 pm
What part of new high street lenders have HSBC missed
Unsuitable or offensive? Report this comment
Thomas | 10 Nov 2009 2:26 pm
Yes that's right there is no competition in Banking - type Bank in an internet search and see just many you can choose from? Dozens of them.
Now type in Mobile phone providers -
Vodafone - 17.7 UK Customers
O2 - 21.5 million UK customers
Proposed merged Orange and T Mobile - 29 million UK customers
3 - hardly any UK customers
So you tell me is there more or less competition in mobile phones than Banks? Even before the merger.
Supermarkets? I'd say less competition in them too but Bank's are just the scapegoat at the moment.
Unsuitable or offensive? Report this comment
Stuart Duncan | 10 Nov 2009 2:32 pm
What a bizarre comment!
There may be dozens of "Banks" but they are mainly part of only four major banking groups (Lloyds, Barclays, HSBC and RBS).
HSBC asking for a level-playing field is like Germany asking for lebensraum.
Unsuitable or offensive? Report this comment
Simon Whitwham | 10 Nov 2009 2:43 pm
Buying existing portfolios does not really distort the market it just moves pre-existing assets around. HSBC does not have a large share of existing stock and is a cherry picker of NEW business in the market. If it buys portfolios from the nationalised banks then the taxpayer gets paid back. HSBC is likley to have accessed the Special Liquidity Scheme so there is no harm in some of that money flowing back to the taxpayer in this way.
Unsuitable or offensive? Report this comment
Anonymous | 10 Nov 2009 2:45 pm
What about Santander & Clydesdale for starters then or Nationwide. Plenty competition in banking, just look at www.moneysupermarket.com.........and at least 6 branches for those folk that don't use online banking.........3 Tesco's in my town........Monopolies & mergers should be looking at them & if looking at banks what about Santander (A & L, B & B, Abbey)....
Unsuitable or offensive? Report this comment
Steve Rodley | 10 Nov 2009 2:51 pm
I reckon "Thomas" could be a pseudonym for the M.D. at HSBC!!!!!
Unsuitable or offensive? Report this comment