HSBC, Facing $2 Billion Settlement, Mulls 5,000 More Layoffs

HSBC sign: layoffs at British bankBy Matt Egan

Fresh off its $1.92 billion money laundering settlement, British banking giant HSBC reportedly is nearing a decision to further slash costs by axing another 5,000 jobs. According to the Financial Times, the London-based lender is "gearing up" for thousands more layoffs that could be outlined at an annual investor meeting in two months.

"There is no fantastical new strategy out there," one person familiar with the bank's planning told the paper. "But there's still huge potential to be more efficient." The job cuts still need to be finalized, but sources told the FT that up to 5,000 staff could be eliminated. If the bank keeps its recent rate of staff cuts to cost savings, that number could rise to nearly 10,000, the paper said.

More: U.S. Jobless Claims Fall For 3rd Straight Week

HSBC declined to comment on the report. Last week HSBC announced plans to find another $1 billion in annual savings in 2013 but didn't specify how it would achieve that goal. HSBC CEO Stuart Gulliver said the company would "fixate on costs."

While HSBC has exceeded its cost-savings goals, the bank's cost-income ratio of 62.8 percent remains well above a target of 48 percent to 52 percent, the FT said. The latest job cut discussions at HSBC come after the European banking giant agreed to pay $1.92 billion in December to settle charges it gave drug lords, terrorists and other shady characters access to the U.S. banking system. HSBC accepted responsibility for inadequate anti-money-laundering compliance and apologized for past mistakes.
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flagirl1990

Figured I would update on my modification assistance. My bankruptcy attorney called to say that HSBC told her that I was given help in 2009 for 18 mos of help, the help was $2400 a month ARM to $1843....and now I don't qualify again??Really?? You can buy it for $980 a month!! Even after they are sued no help!! HSBC wants $385,000 for a house worth on a short sale now $120-$130,000 what would you do?? I want to fight but I am getting so tired!! It breaks my heart my granddaughter is 2 says " we are home" when we pull in the driveway and at the age of 2 she's adorable... But it crushes my heart to know if I move she won't know what home is... I could have been smarter in the house boom and should have never wanted the American Dream. HSBC now will cut me a ridiculous amount because your sued $300....
HSBC keep your damn $$ and modify my loan!!! Obama &Congress thanks for the help!!

May 01 2013 at 12:43 AM Report abuse rate up rate down Reply
Ron

HSBC doesn't give a rats ass about it's customers. They will sell out to the Devil with a smile on their faces. What does one expect from scum?

March 21 2013 at 12:26 AM Report abuse +1 rate up rate down Reply
bo122

I've been waiting for this day, every dog has one, this bank has scammed millions of blue collar workers of money, fees, and assets. Hope they leave the US

March 20 2013 at 9:02 PM Report abuse +2 rate up rate down Reply
flagirl1990

HSBC deserves to go belly up. I have a mortgage loan bought by HSBC my original owner was Chase. I have begged 30 letters to help me modify. I was laid off and they would not help!! Than I was working still no help!! to them I didn't qualify??? So when I asked to prove ownership of the loan they had me in foreclosure within weeks. Also my file was in 4 different attorneys for HSBC. Now had to file bankruptcy for my last try to save my home. My dear mother past away after helping me purchase my first home before she passed to cancer, and I am trying everything to save my last tie to my lovely Mother. HSBC doesn't need to and won't comply with the goverment on modifications since they are not American bank. Please if you have HSBC do everything you can do to fight them. They are shady and they are not willing to help their customers in anyway!!! Instead they get you foreclosed on and collect $$ off our government due to a loss. It's not right!!! I am glad they finally got hit by a suit probably have more coming!! Payback!!

March 20 2013 at 7:50 PM Report abuse +3 rate up rate down Reply
jwyola

Did the Vikings invade HSBC?

March 20 2013 at 7:49 PM Report abuse rate up rate down Reply
Karine

I have an account with HSBC... I got a notifcation last week that Capital One will take over my account ... I guess that aso means they wil buy out HSBC....... One day here - Next day gone .....

March 20 2013 at 5:27 PM Report abuse +2 rate up rate down Reply
harolddundee

The little guy always pays the price for the mistakes of the big guys.

March 20 2013 at 3:25 PM Report abuse +3 rate up rate down Reply
Tom P

Doesn't Capitol One now own HSBC?

March 20 2013 at 2:32 PM Report abuse rate up rate down Reply
2 replies to Tom P's comment
floatgod

Hardly, HSBC is the world's second largest bank with over $2.5 trillion in assets. HSBC (Hong Kong Shanghai Banking Co.) is based in London. The world's largest bank is Deutsche Bank with $2.7 trillion in assets and based out of Geremany.

March 20 2013 at 3:01 PM Report abuse +1 rate up rate down Reply
Karine

Yes Tom, Capital One will take over HSBC ... I have an account with HSBC and was notified last week that Capital One will take the business over and my current account wil be transferred to Capital One.. As for loatgod : It helps to do a thurough gact check before posting false information ....

March 20 2013 at 5:31 PM Report abuse +1 rate up rate down Reply
1 reply to Karine's comment
luongo115

There are so many different parts to HSBC .... just because your account w/ HSBC is being taken over by Capital One doesn't mean that Cap One is taking over ALL of HSBC .... That is not happening. HSBC has banks in London - I thought they were the 3rd largest bank in the world (as opposed to the 2nd that floatgod said). I live in an area where we have an HSBC center and I know it is being sold (or taken over by Cap One, but it doesn't mean that all parts of HSBC is being taken over by Cap One. so you need to get your facts!

March 20 2013 at 8:54 PM Report abuse rate up rate down
Frank

I have a better idea. Take pay away from the executives first. My bet is they will lay people off and then give themselves bonuses and raises. Too bad there is no union. They could blame the unions and republicans would believe them.

March 20 2013 at 1:33 PM Report abuse +3 rate up rate down Reply
1 reply to Frank's comment
dickbambam

Take pay away from the bigwigs!!!!!!!!!!!!!!!!!!!!!!! That's blasphemy. Put thousands on the street deserves a real fat bonus. That's the easist way to get a nice fat stack.

March 20 2013 at 8:11 PM Report abuse rate up rate down Reply
ddiribbons

All those that voted for Obama will see many more layoffs. Of course, most of those that voted for him do not work, anyhow, so they couldn't care less.

March 20 2013 at 1:02 PM Report abuse +2 rate up rate down Reply

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