Page 24 - HSBC (D) Case Study

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)