HSBC faces $2.4bn for new ringfencing rules

A Billion Dollars

HSBC will face a bill of around £1.5bn ($2.4bn) to shield its domestic retail customers from riskier parts of its operations, the chairman of its UK business told lawmakers on Tuesday.

Reuters reports that the Bank of England has told banks they must set up a boundary around their branch operations to protect taxpayers from any repetition of the multi billion-pound bailouts required during the financial crisis of 2007 to 2009.

Among the requirements will be new boards of directors for the ring-fenced entities, new staff contracts and separate pension schemes. Banks will also need to separate their risk-management and IT operations.

HSBC has said it will base its 'ring-fenced' British retail and commercial banking business in Birmingham in central England, shifting about 1,000 staff there from its London headquarters.

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HSBC faces $2.4 billion bill for new ringfencing rules

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