HSBC headquarters to remain in London

| September 29, 2010 | 0 Comments

Despite speculation that banking giant HSBC would consider moving its UK headquarters, outgoing chairman, Stephen Green, has confirmed the bank will stay in London.

The bank, which is Europe’s biggest, has a significant presence in Asia, which has led many to believe the bank would one day move its headquarters to Hong Kong.

“Our policy will remain committed to building up our business in China. There is no country strategically more important to us. That’s why we brought our board meeting here,” Mr Green said.

Several banks have recently suggested they may consider relocating after the Government imposed taxes on them.

In addition, a massive shake-up of the UK’s banking industry could see existing banking giants broken up and new names enter the industry.

Standard Chartered recently said it was looking to free itself from stricter regulations in Britain by considering relocating to the Far East.

However, many banking experts have argued that such regulation could damage London’s reputation as a global financial centre.

HSBC’s comments come just days after several boardroom changes were confirmed.

Chief executive, Michael Geoghegan, will be replaced by investment banking chief Stuart Gulliver.

Meanwhile, Stephen Green (who is moving on to take up the post of trade minister with the Coalition Government), will be replaced by Douglas Flint, currently the bank’s finance director.

In addition, Sandy Flockhart will transfer from the role chief executive of HSBC’s Asian arm to chairing the UK-based HSBC Bank division.

The announcement follows other leadership changes in major banks earlier this month.
Barclays’ chief executive, John Varley, will be departing next year and will be replaced by Bob Diamond, currently president of Barclays Plc.

Furthermore, the chief executive of Lloyds Banking Group, Eric Daniels, has announced he will retire next year.

Fifty-nine year-old Daniels is the longest serving CEO at a major British bank and will continue in his post until next year when a replacement is found.

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