Page 158 - Bank Case Studies
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Strategy
HSBC largely had a less troubled global crisis than its peers
due to its extensive global business which offset heavy
losses in the United States and Europe. But the its problems
were by 2008 already manifest.
“In the 1990/early 2000s HSBC went through something
of a cultural transformation. This had been a very
sleepy old bank run a bit like the British Diplomatic
Service around the world, a network of fiefdoms in
different parts of the world, or a colonial boys club, and
it kind off worked because the people in charge in local
markets vaguely knew what they were doing and there
was some semblance of group control but it wasn’t
taking big risks in many cases and it was all
manageable. But, then Sir John Bond came in as
chairman and he started doing serial acquisitions he
did four or five big acquisitions over a six or seven-year
period and this is where so many of HSBC’s problems
date back too.” (14)
HSBC acquired much of its Swiss private bank when it
bought Republic National Bank of New York and Safra
Republic Holdings in 2009. But it was claimed that it was not
fully integrated into HSBC which allowed different cultures
and standards to exist, spread over 150 geographical
markets. (16)
