- HSBC defends its investment banking practice after senior staff wrote a scathing memo to the bank’s management by senior staff over recent weeks.
- In a statement given to Financial News, HSBC said that its global banking has a “clear strategy that is working.”
- Dissent within the bank is centered around a whistleblower’s memo railing against ‘rewards for persistent failure’ that was sent on August 25.
- It is said to have attacked HSBC’s leadership for what it says is a failure “to create a successful strategy.”
HSBC fired back at internal criticism over its investment banking practices following a staff-penned memo to management late last month.
“We are proud of our Global Banking business and of what Robin [Phillips, HSBC’s co-head of global banking] and his senior leadership team have achieved over the past few years,” HSBC said in a statement to Business Insider.
In a statement given to Financial News, HSBC said that its global banking teams have a “clear strategy that is working.”
Dissent within the bank is centred around a memo, reportedly titled “Global Banking & Markets: Rewards for Persistent Failure” and sent on August 25. It is said to have attacked HSBC’s leadership for what it says is a failure “to create a successful strategy.”
“The division’s leadership has, year-on-year, utterly failed to create a successful strategy,” the memo reportedly said, according to Financial News and the Financial Times. “We are entirely fed up and demoralized and have no confidence at all in the existing leadership.”
“Unlike any other bank, there is no proper and effective route to provide upward feedback: hence this memo, which is whistleblowing on incompetence,” the memo reportedly said.
HSBC’s defence of its global-banking practice comes soon after the Financial Times reported that senior executives have described the memo as “trash” and “lacking substance” to back up its criticism.
In interviews with more than a dozen current and former HSBC executives, the FT said some investors had contacted them about the issue, while others claimed a management shake-up might follow.
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