1. Compare and contrast HSBC’s global operations with its main competitors.
HSBC’s main competitors include Bank of America, Citigroup, China Construction Bank Corporation, JPMorgan, and Wells Fargo etc. HSBC positioned themselves as the ‘World’s local bank’ reflecting its strong corporate identity and global networks. As 2008 was the year where Global Financial Crisis (GFC) hit, it created havoc in the banking industry. HSBC was also one of the banks that was impacted by the crisis and ended up losing a lot of money as well as customers. In contrast to competition, they ...view middle of the document...
Next, other reorganisations took place that aimed at mostly downsizing and trimming operations. These changes did impact the bank’s massive operations in the global markets. In 2009, HSBC conducted a campaign and contrasted themselves to other banks through an interesting ad campaign.
As for Wells Fargo, they took over Wachiova on 3rd October 2008 and created a total loss of $60 billion. On October 28th 2008, Wells Fargo and company was the recipient of $25 billion of the Emergency Economic Stabilisation Act Federal bailout in the form of a preferred stock purchase. On May 11, 2009 Wells Fargo announced an additional stock offering which was completed on May 13, 2009 raising $8.6 billion in capital. The remaining $4.9 billion in capital is planned to be raised through earnings. On Dec. 23, 2009, Wells Fargo redeemed the $25 billion of series D preferred stock issued to the U.S. Treasury under the Troubled Asset Relief Program’s Capital Purchase Program. As part of the redemption of the preferred stock, Wells Fargo also paid accrued dividends of $131.9 million, bringing the total dividends paid to the U.S. Treasury and U.S. taxpayers to $1.441 billion since the preferred stock was issued in October 2008.