On No... Now HSBC is in Trouble

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The stock market was not happy with HSBC. The banking giant reported what should have been a small nothing, a $400mm loss on a loan to an Irish entity with a name that sounds like a Star Wars droid. AGF WHCO 1-A5. But that $400mm loan and loss ended up pulling back the curtain a little more on the current credit crisis. As did the comments from Apollo’s CEO, where he used the words “contagion” and “egregious.”

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HSBC Profit Misses Forecasts After Surprise Charge
https://www.bloomberg.com/news/newsletters/2026-05-05/hsbc-profits-miss-estimates-on-surprise-fraud-linked-charge-in-uk

The Opaque Private-Lending Deals That Left HSBC With a $400 Million Hole
https://www.wsj.com/finance/the-opaque-private-lending-deals-that-left-hsbc-with-a-400-million-hole-1e270530

Private Credit Could Spark Psychological Contagion, Barr Warns
https://www.bloomberg.com/news/articles/2026-05-03/private-credit-could-spark-psychological-contagion-barr-warns

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