Weather Tonight: 4°c Partly Cloudy Night Morning: 8°c Cloudy

Business

HSBC
Celebrating: HSBC's right issue has created a £60 million windfall for City bankers

£60m right rump bonus for bankers

6 Apr 2009


City bankers from Goldman Sachs and JPMorgan Cazenove were today celebrating a £60 million-plus windfall after they successfully completed a £12.9 billion rights issue for HSBC, Europe's biggest bank.

As the banks quickly placed the rump of the share issue in the market this morning after the bulk had been taken by holders of 96.6% of the equity, they earned a hefty extra bonus.

Fees for the rights issue began at 2.75% for the two lead underwriters. But the offer's huge success tripped an extra "discretionary" 0.5% bonus, lifting fees from £350 million to £412 million.

Also on this topic

Reader views (0)

 Add your view

No comments have so far been submitted.


Add your comment

 

Terms and conditions Make text area bigger You have  characters left.

We welcome your opinions. This is a public forum. Libellous and abusive comments are not allowed. Please read our House Rules.

For information about privacy and cookies please read our Privacy Policy.


 

 

  • Slump looms in eurozone as economy takes a dive Euro Europe's lingering debt crisis has pushed the eurozone closer to recession as the beleaguered single currency bloc's economy shrank for the...
  • Sports Direct is on right track Mike Ashley Sports Direct is on track to hit its "super-stretch" profit targets this year, passing the first hurdle that could see it hand founder Mike...
  • Bank may turn off printing presses as inflation drops Mervyn King The Bank of England's latest £50 billion burst of quantitative easing may be the last time it needs to resort to the printing presses
  • Online orders on mobiles lift Domino's Pizza Domino's Pizza UK said its online sales have powered ahead to account for more than half of delivered sales
  • Debt deadline: Greece on brink Greek protests Hopes were rising that Greece will sign up to the first €130 billion (£109 billion) bailout from the European Union and International...
  • Frothy profits at Heineken Beer The economy might be in dire straits but Brits still love a pint down the pub
  • French banks face battering on exposure to Greek debt Jean-Laurent Bonaffé French banks look set to take one of the biggest haircuts on Greek debt as the country's largest, BNP Paribas, has said it had raised its...
  • Thorntons calls in a former Gunner to help turnaround Keith Edelman The chocolatier Thorntons has turned to the former boss of Arsenal football club to turn around its fortunes
  • LandSecs £1bn joint venture for Victoria A £1 billion-plus redevelopment is on the way at Victoria station
  • Morgan Crucible results surge on emerging market growth Morgan Crucible reported highest-ever full-year results, helped by strong performance across both its divisions, and reiterated that 2012 growth would be driven by new products and emerging markets
    •  
    Market Roundup
    WEDNESDAY UPDATE

    Barclaycard's exit leaves CPP with an identity crisis

    Bye bye Barclaycard. Nearly a year since the FSA started investigating CPP over its sales techniques, the identity theft protection firm touched a new, all-time low today after admitting it was losing one of its most high-profile clients

    More