Days before HSBC is expected to unveil its massive restructuring plan, its offices and branches are now abuzz with possible scenarios that will take place in what will be the bank's largest management overhaul in over a decade. Reports have revealed that the bank intends to bring in a new executive along with plans to reorganize its overall business.
The London-based investment bank is expected to officially announce its plans on Tuesday this week. The overhaul would likely result in massive job reductions and a reshuffle of its senior management. Shareholders have stated that the strategy is largely still a mystery, but they expect it to be very risky and likely to involve either massive expansion or rapid reductions.
Hong Kong, the bank's largest market, is expected to feel the brunt of the overhaul strategy, given the recent turn of events within the city. The series of events, including the recent public unrest and the ongoing viral epidemic, has resulted in a significant drag within the company's business in the region.
The overhaul is expected to include scenarios such as multi-billion dollar writedowns and reductions at its major trading desks. These measures are meant to reduce the company's exposure in countries such as Greece, Turkey, Hong Kong, and Oman. According to sources with knowledge in the matter, HSBC is still pushing ahead with the sale of its French retail business and the overhaul of its underperforming business in the United States.
The strategy is also expected to affect the company's interim head Noel Quinn, who had replaced HSBC's ousted CEO, John Flint. Since he took over the reins temporarily, Quinn has been trying to put out fires on multiple fronts to keep the company's bottom line in the green. Quinn reportedly told staff members that he had not yet been asked by the company's board to be a full-time chief, which means that his position is still on the line.
Analysts have speculated that the board will likely want to first reveal the bank's new strategy and gauge the market's reaction before deciding on Quinn's role within the company. However, it could also be possible that the board has chosen other CEO candidates. Sources close to the matter have stated that the bank could be looking into tapping external candidates, including Citigroup's former top Asian executive, Stephen Bird.
HSBC chairman Mark Tucker previously stated in an interview that the bank's hunt for a CEO is mainly focused on looking for someone with a mix of experience and expertise such as in asset management and investment banking.
Apart from the top position, HSBC is also reportedly looking into placing new executives into its foreign branches, particularly in its underperforming businesses in countries such as the United States. A memo to staff members released this month revealed that the bank has picked executive Andrew Fullam to take on the newly created role of US head of Strategic Execution.
