HSBC CEO faces calls to break up the bank


'The most obvious solution is to break the bank up'

HSBC CEO Stuart Gulliver, up against rising capital demands and a sluggish global economy, is facing calls to break up Europe’s largest bank after saying profitability will be lower.

Bloomberg News reports that Gulliver, who is also struggling to contain a tax-evasion scandal at HSBC’s private bank that he said brought 'shame' to the company, reported 2014 earnings that missed analysts’ estimates, driving the stock down almost 5%.

The CEO said parts of the investment bank and some national divisions don’t offer sufficient returns and may face 'extreme solutions'.

'The most obvious solution is to break the bank up, as the evidence suggests that the bank is too big to manage', said Ed Firth, an analyst at Macquarie Group in London. 'It’s difficult to get around the numbers'.

To access the complete Bloomberg News article hit the link below:

Gulliver Seeks Extreme Solutions as HSBC Breakup Option Seen

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