SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 30, 1996
HSBC AMERICAS, INC.
(Exact name of registrant as specified in charter)
DELAWARE I-2940 22-1093160
(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification No.)
ONE MARINE MIDLAND CENTER, BUFFALO, NEW YORK 14203
(Address of principal executive offices)
Registrant's telephone number, including area code: (716) 841-2424
Not Applicable
(Former name or former address,
if changed since report)
2.
Item 5. Other Events
On August 13, 1996 Marine Midland Bank (Marine), the principal
subsidiary of HSBC Americas, Inc. (HAI) announced that it had
reached an agreement to acquire the institutional United States
dollar clearing business of Morgan Guaranty Trust Company of New
York. It is projected that this acquisition will increase demand
deposits of Marine by approximately $2 billion on an on going
basis. Goodwill amortization is not expected to be material to
HAI's results of operations.
The agreement is subject to review by the Federal Reserve Board of
Governors and the New York State Banking Department. It is
expected that the transaction will be completed in the fourth
quarter of 1996.
Item 7. Financial Statements and Exhibits
c. Exhibits
1. Press release dated August 13, 1996 announcing the agreement to
acquire the institutional United States dollar clearing business
of J.P. Morgan.
3.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
HSBC AMERICAS, INC.
(REGISTRANT)
/s/ GERALD A. RONNING
NAME: GERALD A. RONNING
TITLE: EXECUTIVE VICE PRESIDENT &
CONTROLLER
Date: August 30, 1996
Press Release HSBC Americas, Inc.
FOR RELEASE:
Tuesday, August 13, 1996
HSBC FINANCIAL INSTITUTIONS REACHES PRELIMINARY ACCORD TO ACQUIRE
J.P. MORGAN'S INSTITUTIONAL U.S. DOLLAR CLEARING BUSINESS
NEW YORK, August 13, 1996 -- HSBC Americas, Inc. today said a preliminary
agreement has been reached for HSBC Financial Institutions, a division of
Marine Midland Bank, to acquire J.P. Morgan's institutional United States
dollar clearing business.
The agreement is subject to review by the Federal Reserve Board of Governors,
the New York State Banking Department, and the Office of the State Bank
Commissioner in Delaware. It is expected to be completed in the fourth
quarter of 1996. Terms of the transaction were not disclosed.
HSBC Financial Institutions said it would combine J.P. Morgan's institutional
dollar clearing business with its existing dollar clearing operations and
establish its center in Newark, Delaware. The expanded dollar clearing
service would operate under the brand name HSBC Financial Institutions, used
globally for institutional client money transfer and other institutional
business activities by the subsidiaries of HSBC Holdings plc.
"As a result of the agreement, HSBC Financial Institutions will be better
able to grow its global correspondent banking and other institutional
relationships worldwide and offer our clients a wider array of services,"
said Jim Cleave, chief executive officer of HSBC Americas.
"The J.P. Morgan U.S. dollar clearing business could more than double HSBC
Financial Institutions' current dollar clearing values and volumes,"
Mr. Cleave said. "It also will place HSBC Financial Institutions among the top
five U.S. dollar clearing organizations in New York in the Clearing House
Interbank Payment System (C.H.I.P.S.)" Currently, HSBC Financial Institutions
ranks seventh among New York banks in that system. In terms of total wire
transfers through Clearing House, Federal Reserve and other internal systems,
HSBC Financial Institutions processes more than $80 billion in transfers
daily.
Under terms of the preliminary agreement, HSBC Financial Institutions will
assume clearing for about 700 clients, including banks, securities brokerage
firms, corporations, and insurance companies. HSBC Financial Institutions
also would provide dollar clearing services for several J.P. Morgan overseas
offices and various internal departments.
HSBC Financial Institutions will offer positions to all of J.P. Morgan's cash
operations, sales and customer service staff, and establish Newark, Delaware,
as HSBC Financial Institutions' primary U.S. dollar processing center.
Dollar clearing primarily involves the execution of customer wire transfer of
funds from one client's account to another. "Fedwire," the Federal Reserve's
funds and securities transfer service, and C.H.I.P.S., are the two primary
networks used by banks to transfer customer funds. Daily combined volume
through Fedwire and C.H.I.P.S. averages more than 400,000 items, with an
average value in excess of $2 trillion per day.
HSBC Americas, whose principal subsidiary is Marine Midland Bank, had assets
at June 30, 1996, of $22.7 billion, and is an indirectly-held, wholly-owned
subsidiary of HSBC Holdings plc. With over 3,300 offices in 72 countries and
assets of $368 billion at June 30, 1996, the HSBC Group is one of the world's
largest banking and financial services organizations.
For additional information, contact:
Mary Jo Jacobi, HSBC Holdings plc 260-9141 (London)
Art Samansky, HSBC Americas 212-658-1028 (New York)
