HSBC restructures business operations, creates 3 broad units |
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Fri, 24 Feb 2006 10:55
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LONDON: HSBC Holdings Plc. is restructuring its corporate and investment banking divisions, which will result in a major reshuffle of roles of the bank's top executives.
The Europe's largest bank, in an internal communication Thursday, said its Corporate, Investment Banking and Markets (CIBM) operation will be reorganised into three business units -- Global Banking, Global Markets and Global Transaction Banking -- and will be jointly headed by John Studzinski and Stuart Gulliver.
Sources in the bank said Studzinski will now mostly handle client relationships, giving up his responsibility for the bank's capital markets business. There are also reports that he may assume the role of an adviser to the bank's chief executive Stephen Green.
The memo has been signed jointly by Studzinski and Gulliver.
HSBC had combined its various businesses in 2002 to form the CIBM division and it had engaged Studzinski, then with Morgan Stanley, to run the business along with bank insider Gulliver. Sources say the arrangement had seen mixed results. In the first half of 2005, the division's earnings had fallen 18 per cent with costs up 24 per cent.
Over the last two years, the bank has got rid of some 1,200 experienced bankers, replacing them with freshers.
Global Banking will now include corporate banking and mergers and acquisitions, while Global Markets will include all trading of bonds and equities. The former is to be run by Robin Phillips and Mukhtar Hussain and the latter by Mike Powell. The current co-heads of global investment banking Mark Bucknall and Robin Osmond are leaving their roles. While Bucknall has retired, Osmond may be entrusted with some other responsibility.
A bank spokesperson said the bank remains committed to the development of corporate, investment banking and markets, which is part of the bank's five-year turnaround strategy.
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