is looking torelease billions of dollars in capital it has tied up in the U.S., but it musttread carefully so as not to upset regulators, Reuters reported Sept. 23,citing "senior sources" at the bank.
According to research by DeutscheBank, its U.S. balance sheet earns a return on equity of only 1.4%, compared to5% for the bank globally, and 13% for other major U.S. commercial banks.
, a senior fund managerat Royal London Asset Management, which owns shares in HSBC, noted that asshareholders, they were concerned about where banks deploy capital and what itslong-term returns are.
Analysts and investors say up to$10 billion in capital could be returned to the parent company by way of assetsales.
HSBC's CFO, Iain Mackay, told thenewswire that any plans to release capital out of the U.S. are subject toapproval by the Federal Reserve.
The lender signed a deferredprosecution agreementwith the U.S. Department of Justice in 2012 regarding failures inmoney-laundering controls. A "major HSBC investor" told Reuters thatthis issue could mean the U.S. would prefer if the capital stayed in America.