HSBC threatens to leave Britain and other countries, 30,000 layoffs in the offing?


HSBC may be forced out to exit Britain for Hong Kong due to newer banking regulations that could cost the company billions of dollars, Reuters reported.

Added banking regulations from the British government could cost the bank $2.5 billion annually, according to the company, which would make it very expensive for them to stay in the country.

The multinational banking firm also reported that bad United States debts have jumped by $1 billion, the highest jump in two years. They also reported a 36 percent drop in third quarter profits due to the ongoing Eurozone debt crisis.

However, the AFP reported that HSBC said that third-quarter net profit soared due to an accounting gain but warned about choppy waters ahead.

"The continuing macroeconomic, regulatory and political uncertainty, particularly in Europe, adversely affected our industry's performance in the quarter ... Against this backdrop, HSBC remains resilient, with a strong balance sheet and robust liquidity," said Stuart Gulliver, HSBC chief executive, as reported by the AFP.

Gulliver is helping spearhead important changes in the multinational bank, which could see 30,000 jobs axed in two years and create 15,000 jobs in developing markets in that same period. This is part of the company’s strategy to save costs by around $2.5-3.5 billion by 2013.

In addition to layoffs, Reuters reported that HSBC is planning to exit 14 countries and has sold branches in New York state.

Source: Third Age