HSBC, Europe's largest bank, has announced it is cutting 6,000 jobs in the US after reporting a 60 per cent drop in profits for 2008.The bank also announced Britain's biggest-ever rights issue on Monday as it seeks to raise nearly $18bn.
HSBC's said it planned to offer five billion shares at 254 pence - 48 per cent lower than Friday's closing value of 491 pence.
Stephen Green, HSBC's chairman, said the cash raised would help the bank amid the current global economic problems.
"This capital raising will enhance our ability to deal with the impact of an uncertain economic environment and to respond to unforeseen events," he said in the earnings report.
The bank reported an adjusted pretax profit of $19.9bn, down 18 per cent versus 2007, but said that profit had slumped 62 per cent to $9.3bn from $24.2bn a year earlier.
Aljazeera
