HSBC move its headquarters from London
The banking giant HSBC may move from London if the British government decided to split the large banks to smaller, said a senior official of the company, quoted by the BBC. Stewart Gulliver, head of investment banking unit based in Canary Wharf Bank, warned during a banking conference. According to him he was “genuinely concerned” that the British banking committee could recommend the separation of banks. “Obviously this is relevant to the choice of location for headquarters of our institution.”
“I want to be completely clear. Our preference is to plant in the UK, “added Gulliver. He also notes that no other country does not consider the division of banks in response to the financial crisis of 2008. Gulliver made his comments in response to a question from the audience during a financial conference in London.
The British coalition government establish an independent banking committee in June, among its responsibilities is considering possible reforms of the banking system. Liberal Democrat campaign took place during the elections in favor of the separation of banks, separating their traditional banking activities more risky investment banking. The Commission may analyze the issue prompting banks to simplify their international structures to be any possible future bankruptcies easier.
After the collapse of Lehman Brothers economists and many politicians came to the conclusion that major international banks have become “too big to fail”. If the bank is so large that its failure would ruins the entire financial system, the government will always be forced to save her. Concern therefore is that if banks know that governments will always rescue them, may be encouraged to take too much risk. HSBC moved its headquarters from Hong Kong to London in 1991 after the acquisition of Midland Bank. Currently occupies one of the biggest tower in Canary Wharf.
Tags: banking committee, headquarters, HSBC, London, Stewart Gulliver, Stuart Gulliver