Bank may need $190 billion in loss-absorbing debt: Analysts
HSBC Holdings Plc may have to raise as much as $190 billion of capital to satisfy the demands regulators are making of the world's biggest financial firms, according to Exane BNP Paribas.
HSBC, Europe's biggest bank by market value, requires a further $21 billion of additional Tier-I capital, $19 billion of Tier-II securities and as much as $150 billion in other debt that can be converted to equity if a bank fails, Exane analysts led by Jonathan Pierce, who rate the bank underperform, said in a report Wednesday. The instruments are designed to absorb any losses banks make in a crisis to avoid public money being used to bail out collapsing firms.
HSBC, Europe's biggest bank by market value, requires a further $21 billion of additional Tier-I capital, $19 billion of Tier-II securities and as much as $150 billion in other debt that can be converted to equity if a bank fails, Exane analysts led by Jonathan Pierce, who rate the bank underperform, said in a report Wednesday. The instruments are designed to absorb any losses banks make in a crisis to avoid public money being used to bail out collapsing firms.