Article: Hongkong Bank's global gamble. (proposed merger of HSBC Holdings and Midland Bank)

The proposed merger of Hongkong and Midland banks is another risky run at global banking. It has a better chance of succeeding than most

GLOBALISATION is no longer a popular word among bankers. Too many have lost money in ill-conceived ventures in remote parts of the globe. Japanese, American and British banks that once claimed the world as their market have now limped home to tend battered balance sheets. Yet globalisation has lost none of its allure for HSBC Holdings, the parent of Hongkong and Shanghai Bank. On March 17th HSBC announced that it would merge with Midland Bank, the least profitable of Britain's four biggest clearing banks.

In theory, the ...

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