HSBC to try to raise $18 billion

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HSBC to try to raise $18 billion

March 1, 2009 – 2:38 am – No Comment

With all the problems facing the world, including President Obama trying to pass a $3.5 trillion budget through Congress, banks like HSBC have found themselves in the middle.

HSBC is now trying to raise $18 billiion in funding to stay afloat through these hard financial times.

In Germany, Chancellor Angela Merkel urged European Union states to work together to deal with the downturn.

As financial institutions grappled with tighter credit conditions, two sources familiar with the matter said Britain’s HSBC would announce a share sale of up to $18 billion, the biggest ever for an British bank.

HSBC is expected to report a 22 percent fall in annual profits to $19 billion. The firm was said to have avoided many of the big credit market hits taken by rivals, but rising bad debts around the world are pressuring its bottom line.

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