Page 163 - Bank Case Studies
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The Future
Today HSBC tagline now, ‘HSBC helps you unlock the world’s
potential’ is a smaller, more manageable operation. It is
coming out of a period of extensive restructuring, having
exited more than half the countries where it had branches
and made more than 87,000 job cuts.
These developments should allow HSBC to return more
capital to shareholders either by paying higher dividends or
extending its share buy-back programme.
On this basis John Flint (head of the bank’s Retail Bank and
Wealth Management divisions) who took over from Stuart
Gulliver on 21 February 2018 may have a freer hand than his
predecessor.
However, a number of outstanding misconduct issues still
remain unresolved. HSBC is expecting a $1bn-plus fine in
the coming months for its role in mis-selling toxic mortgage
products in the US ahead of the financial crisis.
In February 2018 HSBC warned “that it could pay at least
$1.5bn in penalties over alleged tax evasion and money
laundering at its Swiss private bank” casting a shadow over
Stuart Gulliver’s final day as chief executive. (13)
The February warning about further penalties came after
HSBC agreed to pay €300m in November to settle an
investigation by the French public prosecutor into
allegations it helped clients evade taxes in 2006 and 2007.
(13)
