HSBC chairman: Banking industry “owes an apology”

| October 7, 2009 | 1 Comment
”HSBC

Stephen Green, chairman of Europe’s largest bank HSBC, said the banking industry “owes the real world an apology” for the financial crisis.

In an interview with the BBC, Mr Green who is also a Church of England priest, said: “I think the change in the public perception of the industry is entirely understandable. The banking industry has not covered itself in glory to say the least, and indeed the industry collectively owes the real world an apology for what has happened.

“It also owes the real world a commitment to learn the lessons. Some of them are about governance and ethics and culture within the industry,” added Mr Green.

While the world cannot do without banks, said Mr Green, bankers need to learn the lessons of the financial crisis that has had a devastating affect on the global economy.

Many have long since been blaming banks for their part in the global recession, which is why there has been public outrage over the scale of bonuses within the banking industry.

When Green was head of HSBC’s investment banking and markets operations, he cancelled all bonuses in 2001 and 2002 during a stock market slump.

According to Green, he could not justify bonuses since the business had not performed well for shareholders.

In protest, many bankers and analysts left the company, however Green was later promoted to chief executive following the brave decision.

In related news, Michael Geoghegan the group chief executive of HSBC, said he is holding fire on expansion plans for fear of a “W” rather than a “V” shaped recession.

Geoghegan said he is braced for a second economic downturn, telling The Financial Times he is cautious about “growing too fast” before signs of a recovery can be confirmed.

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  1. mike Slade says:

    Mr Green who is also a Church of England priest, said: “I think the change in the public perception of the industry is entirely understandable.
    I would accept the refund of money wrongly and knowingly removed from my account by stealth.
    And to be returned to 1% over base at the end of a 2 year fixed peroid.
    No he leaves the dirty work to employees.

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