Suddenly, we found ourselves discussing HSBC.

The bank had not made any announcement in recent times except in general that it was trying to focus its business around the Far East where, as its name indicates, it originated.

But the hidden hand that came up with the story was certain: the decision had been taken and the bank was on its way out.

More, it was selling out to APS Bank, the church-owned local bank.

Again, no official announcement was made.

And all this caused by a single, unsigned, report on the press. Till that time there was no statement from either of the banks (HSBC with a rather generic one late in the day; while APS remained silent throughout).

Some people expected the government to intervene but the government wisely stayed out.

When Mid-Med Bank was sold to HSBC the Labour leader Alfred Sant had gone round the country fixing statements to bank doors rather like what Martin Luther did with his 95 theses to church doors in Wittenberg.

The bank was nevertheless sold and at the price dictated by HSBC.

Even today you still find people arguing the bank was sold cheaply considering the worth of the real estate of the bank branches.

But the widespread shock expressed by people at this single unconfirmed report this week shows that for many people the value of the bank goes beyond the price of the bank's branches.

This is something people like Sant refused to see - the advantage of having a brand that is recognised all over the world, a world-wide bank that could offer corresponding contacts all over the world.

This does not mean that the bank did not have faults. But more than other banks it realised earlier than others the danger of so many loans going out to the construction business in what can become a gigantic Ponzi scheme.

It is on this level that any government watches closely what is going on and the effects on the economy as a whole. There is Malta's reputation at stake, already shaken by a bout or two of grey listing and so many reports of corruption.

All over the world banks are bought and sold, close down or merge and follow the rules of the market.

Many have been expressing fear that Malta may be left without an international banking name and its presence and have been urging government to get us a world brand. We tried it once and ended up with Banco di Roma. Was that effective?

It's a bit like trying to get Alitalia to take over Air Malta when the Italian airline was itself being taken over by Lufthansa.

Everything considered it would be fine if HSBC remains in Malta but if not there may be other international names that might be attracted even in these challenging times.

And as it is, there are other banks in Malta that might be small but are well run.

There is also the church bank but I cannot see how it can generate enough dough to buy out a world brand.

Nor do I think a bank that was born to help workers and widows of Valletta (to say nothing of ladies of the night from the Gut) save their earnings should be throwing its weight around like a capitalist bank.

And there is also the not so small matter of how one of the few independent commentators on the financial scene suddenly found himself eased out ironically after commenting on what I have just said.

And when the same website is run by the head of Malta's institute of journalists, no less.

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