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  • HSBC CEO to step down end of year. 1 comment
    Sep 23, 2010 3:54 PM | about stocks: HSBC

    September has not even ended, and another executive of HSBC is headed out the door.  After much speculation on Michael Geoghegan’s future, the Financial Times this morning report that HSBC’s CEO will resign at the end of the year.  HSBC’s culture has been to assign group CEOs as the chairman, however that seemed highly unlikely in Geohegan’s case which caused reports to be published in the media about Geohegan giving the board an ultimatum, which the group denied immediately.  According to the Financial Times, head of HSBC’s investment banking unit, Stuart Gulliver will replace Geoghegan as CEO.

    HSBC’s stock is down 6.3% on the London Stock Exchange YTD, while the ADS is down 7% on the New York Stock Exchange.  Despite its USA retail operations, HSBC Bank USA N.A., taking a significant hit during the global financial crisis, the group overall managed to be one of the few banks whose future was not in doubt.  The company reported 1H profits had doubled to $6.76 billion, but reported higher costs which caused concern to a lot of investors and analysts.   The stock has been in a tight trading range since the summer of 2009, and a boardroom battle can prove to take a toll on its stock in the near future, especially with uncertainty about a double dip recession. 





    Disclosure: No positions
    Stocks: HSBC
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  • davidm4210
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    I was floored by this. Now they are in a tough spot as no matter who they hire...will result in at least 3 top execs quiting. Its because HSBC broke from their protocol. If they selected the Chairman from the group CEO pool...it wouldnt cause hard feelings. Im on hsbc.com every day follwoing this
    1 Nov 2010, 04:32 PM Reply Like
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