World-wide banking

The largest bank in the world which has played a conservative approach towards risky investments and has benefited as a result. Although it has dropped in price this year, it has been strong due to its commercial banking and asset management divisions.

Credit Suisse [CS], UBS [UBS] and HBSC [HBC] are all overseas banks that are attracting investor interest. But only if you must.

I’m more bullish on Deutsche Bank (DB), HSBC (HBC), and Barclay’s (BCS)says Tim Seymour. It doesn’t seem their write-downs will be that bad.

Pete Najarian now sees bearish activity in HSBC (HBC) options. I think it’s aggressive speculation, Najarian explains, that HSBC could fall apart. I’m just wonder what’s coming. I speculate that there could be writedowns ahead.

10%

bank

HSBC (HBC) was upgraded to Buy rating from Neutral at UBS. Price target lifts to $86.71 from $81.83 while FY 2008 eps estimates dip to $6.50 from $7.30.

Though Singapore still trails Switzerland in private-banking assets, it's fast closing in. This year, its private-banking growth should hit 30%, versus single digits for Switzerland.

Cramer: Countrywide May Kick Off More Deals
With Bank of America saving Countrywide, Jim Cramer talks about what other deals could be in the works.

Click here to watch the video.

subject to mortgage downturn

From Barron's 6-18-07:

"HSBC's weak share price performance over the past year is prompting calls to break up the group. But the immediate problems lie in the boardroom, rather than in geographic diversification... HSBC has been battered by the U.S. subprime-mortgage mess...What HSBC needs isn't a breakup, but rather a tighter hold over its global assets. More skill at transferring best practices, technologies, products from one region to another. It hasn't been able to integrate acquisitions quickly...Investors should urge HSBC to fix its board of directors, which lacks diversity. It needs a new chairman, one who's not a former HSBC CEO."

HSBC Holdings said the market for "subprime" loans to people with limited or poor credit histories is in trouble, and that its bad-debt charges will be 20% higher than forecast, exceeding $10.56 billion.