HSBC threatens to leave UK

3 September 2010 | By Samuel Dale

HSBC has indicated it may leave the UK if the government decides to separate retail and investment banking.

The coalition government has set up the independent Commission on Banking with the remit to consider breaking up the big banks.

Speaking at a Nomura conference Stuart Gulliver, head of the Canary Wharf-based bank’s investment banking division, says he is “genuinely concerned” that UK banks could be split.

The FT reports that Gulliver says: “It has significant implications clearly for where we may choose to headquarter our institution.”

“I want to be crystal clear. Our preference is to be headquartered in the UK.”

Business secretary Vince Cable and the Liberal Democrats have campaigned for a separation of retail and investment and banking.

HSBC moved its headquarters from Hong to London in 1991 but in January this year it moved its chief executive’s office back to Hong Kong.

The Commission on Banking will report its findings at the end of September.

Readers' comments (12)

Anonymous | 3 Sep 2010 2:33 pm
Call me Dave and the rest of the coalition clowns need to take notice of this and fast. HSBC will be the first of all of the financial institutions to leave the country costing thousands of jobs and billions in lost revenue.

Get a grip for goodness sake. Without the financial sector we will be bankrupt as a country in no time.
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Kevin friend | 3 Sep 2010 3:26 pm
This must be music to Brokers ears on a Friday! I suspect not though. Time will tell.
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Anonymous | 3 Sep 2010 3:48 pm
As a mortgage broker I will be not be to sad if HSBC leave - as they will only deal directly with customers and give little or no advice

Why should HSBC have the power to dictate how our financial services are run - the major banks in the uk already have too much power and sway over financial policies already.

If the bank wants to leave let them - the should not be allowed to intimidate how our financial services are run
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adrian | 3 Sep 2010 3:52 pm
We need the banks in the UK.

But this behaviour tends to back up the niggly suspicion that the banks have too much power over the legislators, the FSA and the Treasury.

That needs to be sorted.
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Mark | 3 Sep 2010 4:02 pm
Let them go. The Government should support smaller institutions and let them grow - creating a competitive market.

Banks have been bully boys too long, and creating extra taxation on them will not work. They will simply increase their margins, hitting consumers. We need more of them to create competition in the market. Let the big ones go, and support the creation of smaller firms.

Brown & Co. created the monopoly we currently have, and supported acquisitions - against legislation. We have a long way to go to get rid of this legacy - and on the road we should not tolerate greed.

If we had a number of institutions the risk could be spread and in this instance, Government support could have been spread more effectively and not required at the same level - of course regulation needs to prevent a recurrence, but the adage 'don't have all your eggs in one basket' has long been forgotten in British banking
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David Cameron | 3 Sep 2010 4:12 pm
Call their bluff.

Ask Gordon & the rest of the Labour pillocks to go with them - they put us in this mess in the first place.
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Richard | 3 Sep 2010 4:15 pm
WOW!!!!! I read a little naivite here.

We need the banks and we need the jobs. The fact they don't deal with IFA's is irelevant, although for one I do not regard that a problem.

Too powerful??? well maybe so and that does definitely need to be sorted. Some kid gloves needed though I fear.
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Too hot? Get out of the kitchen | 3 Sep 2010 4:39 pm
bye bye bye bye,
bye bye bye bye,
ahhhhhhhhh.

Let them go, the customers and the people used to serve them will still be needed. There will be no jobs lost as people won't stop investing or banking just because someone leaves the market.

Staff may just wear a different name badge.
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Rob Roberts | 3 Sep 2010 4:56 pm
Well, I would be sad to see HSBC leave the UK. It would be bad for business and the economy in general.

I'm always at a loss as to why there is so much hating for HSBC from the adviser community. They do deal with advisers, We've referred a number of cases to them without any issues whatsoever. Sure, they don't pay proc fees, but if you establish with the client that they are receiving a full advice and recommendation process along with all of the consumer protection that brings, and you work with the lender in order to make the processing as smooth as possible, clients don't have an issue in paying a fee for that service. In many cases, the arrangement fees of HSBC are £500 or more less than other lenders, so the net effect to the client is the same if you charge them that amount as a fee for your work.

So, don't hate HSBC for their business model just because it is different to other lenders. Think of ways to use it to your advantage instead.
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Anonymous | 3 Sep 2010 9:32 pm
What makes you all think that if HSBC moved its headquarters they'd sell/close their UK branch network... having HQ in the UK doesnt stop them having branches in 80 however many other countries...
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