HSBC Stock Down, Seeks Release of $10 Billion in Trapped U.S. Capital - TheStreet

NEW YORK (TheStreet) -- Shares of HSBC (HSBC) - Get Reportwere sliding in early morning trade on Friday as the company seeks to release billions of trapped U.S. capital without concerning politicians or regulators, sources told Reuters.

HSBC, a London-based banking and financial services company, has more than $20 billion in capital in the U.S. earning 1.4% returns. Globally, its equities earn 5% in returns.

Nearly half of HSBC's $20 billion in the country could be returned to the company through asset sales, analysts note, Reuters reports.

Following the 2008 financial crash and Lehman Brothers' collapse, U.S. regulators have required foreign banks operating in the country to hold more capital in order to reinforce their strength.

The bank could take a portion of its money out of the U.S., but would have to first submit plans to the Federal Reserve, Reuters adds.

HSBC is currently under fire by U.S. regulators for potentially breaking anti-money laundering laws in a 2011 incident.

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