Korea First Bank
Why did the Korean government choose New Bridge Capital over Hong Kong and Shanghai Bank Corporation?
The reason why New Bridge Capital was selected over Hong Kong and Shanghai Bank Corporation (HSBC) is because it offered the government more control. Under the deal, New Bridge was going to give the Korean government a 51% stake in the firm. However, New Bridge would have 100% operational control and could determine the management structure / operations of the bank's daily functions. This was a more attractive offer by allowing the Korean government to easily intervene during times of financial crisis. At the same time, it allowed them to sell a portion of their assets and focus on maintaining the majority of control.
HSBC was going to take 100% ownership over the bank during a period of several years. Initially, the deal called for them purchasing...
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