HSBC Dodges First Brands Collapse
The collapse of American auto parts maker First Brands has hit numerous players in the financial industry. HSBC was apparently not one of them.
HSBC was not exposed to the collapse of First Brands, according to a «Bloomberg» interview with head of corporate and institutional banking Michael Roberts.
«We were not involved directly in First Brands and don’t know how much due diligence was done,» he said, adding that the bank was in the process of rolling out fraud detection technology, originally developed for trade finance, across divisions. «These types of financing arrangements are going to require much more due diligence, much greater technology, much more understanding of what you are financing.»
The fall of First Brands has impacted various major financial institutions across the industry, including Jefferies and UBS. Prior to filing for bankruptcy protection in September, lenders began investigating irregularities in the auto parts supplier’s financial reporting.
