HSBC May Overstate Assets by $92.3 Billion: Forensic Asia

HSBC Holdings Plc, Europe’s largest bank, may be overstating its assets by as much as $92.3 billion and need to raise capital, according to analysts at Forensic Asia led by Thomas Monaco.

Loan loss reserves, tax assets and pension plan assets at the London-based bank are “questionable,” Monaco and Andrew Haskins wrote in a note to clients on Jan. 14, rating the bank a sell. The firm may need as much as $111 billion of capital, they wrote. HSBC spokeswoman Heidi Ashley declined to comment.