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| HSBC in £12.5bn fund raising plan | |
| (30 minutes later) | |
| Europe's biggest bank, HSBC, has confirmed it is seeking to raise £12.5bn ($17.7bn) from shareholders through a new rights issue. | Europe's biggest bank, HSBC, has confirmed it is seeking to raise £12.5bn ($17.7bn) from shareholders through a new rights issue. |
| HSBC chairman Stephen Green said in a statement that the cash raised would help to deal with the impact of an uncertain economic environment. | HSBC chairman Stephen Green said in a statement that the cash raised would help to deal with the impact of an uncertain economic environment. |
| The news came as HSBC revealed pre-tax profits for 2008 of $9.3bn (£6.5bn), down 62% on the previous year. | The news came as HSBC revealed pre-tax profits for 2008 of $9.3bn (£6.5bn), down 62% on the previous year. |
| The bank has been hit by losses in the US sub-prime mortgage market. | The bank has been hit by losses in the US sub-prime mortgage market. |
| In North America, HSBC reported a loss of $15.5bn and said it planned to close the majority of its consumer lending business in the US. | |
| However, it said that it remained "committed to the US". | |
| HSBC admitted the banking industry had done many things wrong. Inappropriate products were sold inappropriately by many, it said. | |
| Group chief executive Michael Geoghegan said in his review: "2008 was a very difficult year for the financial sector, and 2009 will be no less so, as the global downturn intensifies." | |
| In the UK, HSBC has not sought any financial help from the government. | In the UK, HSBC has not sought any financial help from the government. |