HSBC is still undecided if they should move headquarters to Hong Kong, after months of meeting, brainstorming and consideration. The Europe’s largest lender, however, has decided something for the year 2016 – to freeze hiring and salaries – globally. An email sent to HSBC employees on Friday detailing the latest cost-cutting has apparently leaked to the public.
HSBC, a bank many thought was Hong Kong-based and Chinese-owned, had started charging other banks for depositing money in currencies of countries that have negative interest rates last May. Essentially, deposits in Euros, Swiss francs, Danish krone and Swedish krona were affected effective August 1, 2015.
Earlier in February 2015, HSBC leaked files, covering the period 2005-2007, exploded revealing how the UK’s biggest bank happily helped their clients hide “dirty money” through HSBC Swiss to the tune of US$120 billion (£84 billion; RM499 billion). As many as 80% of 30,000 accounts exposed were linked to drugs smuggling, bribery, terrorists funding, or looting their own countries.
In its attempt to reward shareholders with higher dividends, HSBC Chief Executive Officer Stuart Gulliver pledged to cut 50,000 jobs worldwide in June 2015. Their mission: to save as much as US$5 billion (£3.5 billion; RM20.8 billion) every year by 2017. That was on top of 40,000 jobs already axed between 2011 to 2014.
Contractors at its investment banking division in London had their pay cut by 10% in October, 2015. The latest actions of freezing hiring and pay were acknowledged by HSBC Gillian James. Although the email didn’t mention about bonus, most likely such windfall isn’t on the table too. HSBC said it would provide update whether it will relocate to Hong Kong on February 22.
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- Exposed!! – How HSBC Swiss Bank Helped Hide (Dirty) Money
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February 1st, 2016 by financetwitter
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