The US government dual banking regulation levels, transaction costs and HSBC's strategy in acquiring Marine Midland Banks, Inc., 1978–80
Bibliographic Data
| ID | 8418609 |
|---|---|
| Authors | Qing Lu (0000-0002-7943-966X, a Department of Marketing and Business Strategy , University of Hull Business School , Hull, UK, corresponding author) |
| Year | 2010 |
| Volume | 52 |
| Issue | 6 |
| Pages | 955-977 |
| Publication date | 2010-10-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Business History (JOURNAL) |
| Journal identifiers | ISSN: 0007-6791 • E-ISSN: 1743-7938 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/00076791.2010.511184 |
| OpenAlex | W2163493408 |
| Language | EN |
| Citations received | 2 |
| References cited | 22 |
This paper undertakes a case study of HSBC acquiring Marine Midland Banks, Inc. (MMBI) in the US between 1978 and 1980, a historic incident that had a catalytic impact on the whole debate about foreign banking in the US and re-examination of the restrictions on the US banks' inter-state operations. This paper explores the impact of the US government's financial regulatory structure on HSBC's acquisition and how HSBC dealt with difficulties caused by the US government regulations. We find that the structure of the US government financial regulation caused political hazards which further influenced HSBC's contractual hazards and business transaction costs. We have established that the different attitudes of the federal and state regulatory authorities toward HSBC's acquisition were closely related to their interests, regulatory capability and resources. Our analysis also confirms that HSBC's commitment strategy did help it to earn the federal regulatory authorities' support and MMBI's cooperation, which facilitated the conversion of Marine Midland Bank (MMB), a principal subsidiary of MMBI, to the status of a national chartered bank and allowed HSBC to circumvent the NYBD's regulation
Art · Business · Commerce · Database transaction · Dual (grammatical number · Government (linguistics · Industrial organization · Transaction cost · Banking stability, regulation, efficiency · Corporate Finance and Governance · Finance · Global Financial Crisis and Policies
| Citations per year | 0.18 |
|---|---|
| Citation span | 2015 - 2024 (10) |
| Highly cited | No |