Hsbc 'under Pressure' To Exit London

[no accountant]

HSBC 'under pressure' to exit London

International shareholders in HSBC are questioning the choice of London as the home for the bank's global headquarters.

HSBC's top managers on Friday their gave their strongest signal yet that the bank could exit the UK, as they revealed the concerns of foreign investors in the increasing costs of being based in London.

..

"In a places like Hong Kong, Brazil, India we find it very hard now to compete against the American banks and the local banks because they're not subject to the same rules," said Mr Gulliver.

If we squeeze out all the big international banks from UK, what will we be left with? Call centres? Cheap car manufacturing?

Does anyone think we should get rid of the 50% tax so we can retain good people in this country?

[athom]

Without finance what will the UK do?

We don't have fish any more so can't even take the Icelandic solution.

[Democorruptcy]

We should let them go but only if they promise to take Lloyds and RBS with them.

[_w_]

If we squeeze out all the big international banks from UK, what will we be left with? Call centres? Cheap car manufacturing?

Does anyone think we should get rid of the 50% tax so we can retain good people in this country?

If we get rid of them it will reduce the overall country's cost base, not mentioning the odd multi-trillion pound bailout that will keep us over-indebted for more than a generation.

Give the rest of the country a chance, get rid of these parasites. Let them f*ck up some other country, the UK is spent.

Edited November 6, 2010 by _w_

[no accountant]

not mentioning the odd multi-trillion pound bailout that will keep us over-indebted for more than a generation.

Actually the shares of Lloyds/HBOS and RBS that we own have actually made a profit based on current share prices. So we're up on that too.

[Meat Puppet]

Let them go. I would love to see E14 turn into a ghost town, again, with squatters filling up Canada Square.

[no accountant]

Give the rest of the country a chance

And if you lose our tax base because of everyone leaving, taxes on the rest of the country will have to go up, so it's not really 'giving the rest of the country a chance.' is it? Quite the opposite.

Why do you think other industries will blossom if London's biggest sector, international financial services, is no longer there?

They are some of our best clients, and I'm really worried that they might leave. Same for corporate law, Clifford Chance etc. They depend on them too.

[no accountant]

I would love to see E14 turn into a ghost town, again, with squatters filling up Canada Square.

Why?

[okaycuckoo]

They seem to be complaining about tighter regulation rather than income tax. They won't leave over regulation, because it's an international problem.

[Toto deVeer]

Actually the shares of Lloyds/HBOS and RBS that we own have actually made a profit based on current share prices. So we're up on that too.

At least on paper...

[Meat Puppet]

Why?

The entire premise of the UK economy during the Blair/Brown years was that we were somehow especially gifted with financial talent and that gave us a comparative advantage in the international economy.

It was bullsh*t because 95% of all the finance industry is bullsh*t. Better swallow the bitter pill, take our 10 years or so of abject pain and find a new way. Enabling the financial junkie will end in death.

[alexw]

If we squeeze out all the big international banks from UK, what will we be left with? Call centres? Cheap car manufacturing?

Does anyone think we should get rid of the 50% tax so we can retain good people in this country?

Excellent. If they leave it will diminish the stranglehold the financial sector has over our political sector. That means it will be much easier to bring in proper regulation and rebalance our economy.

[miko]

They need to look for a bigger host.

The next time they all f*ck up, the government wouldn't be able to afford to bail them all out.

I guess that is the calculation they have made at the top of HSBC - there is no guaranteed bailout for them.

HSBC were not bailed out last time .

[stormymonday_2011]

I found the following statement bizarre

"In a places like Hong Kong, Brazil, India we find it very hard now to compete against the American banks and the local banks because they're not subject to the same rules," said Mr Gulliver.

With regard to retail banking surely HSBC are be subject to the regulations of the countries where they have a retail banking license for their outlets. For other types of trading it will be the rules governing the local financial markets. US banks trading in London are subject to the identical rules as HSBC.

If HSBC dont want to trade financially in London and do not want to be listed there then that is their decision but there is no guarantee they are going to find financial controls are looser elsewhere in the globe (in fact it was pretty much a given in the pre 2008 markets that all the dodgy US trading was directed via the City Of London because the rules were easier there). As any bank can walk out of London anytime it wants these threats are presumably just another attempt to bluff the government into not tightening the rules rather than a serious statement of intent. Where else are they going to find such accommodating central bank, such supine regulators, such weak politicians and such gullible taxpayers to underwrite their trades

The simple truth is that if HSBC could trade more profitably elsewhere they would already be gone.

Edited November 6, 2010 by realcrookswearsuits

[alexw]

And if you lose our tax base because of everyone leaving, taxes on the rest of the country will have to go up, so it's not really 'giving the rest of the country a chance.' is it? Quite the opposite.

Why do you think other industries will blossom if London's biggest sector, international financial services, is no longer there?

They are some of our best clients, and I'm really worried that they might leave. Same for corporate law, Clifford Chance etc. They depend on them too.

Most of the financial sector does NOT generate wealth. That massive tax they are paying? Its the proceeds of stealing the wealth that the real wealth generators make.

So here's an analogy. If i steal your car but pay 50% of the proceeds from it in tax, its a fabulous thing for our country. Because thats exactly what you are saying.

Of course if your involved in the wealth theft buisness or servicing it, as you are, you'd be upset if it was made harder for you / your clients to steal.

[muggle]

And if you lose our tax base because of everyone leaving, taxes on the rest of the country will have to go up, so it's not really 'giving the rest of the country a chance.' is it? Quite the opposite.

The tax the banks pay is minimal compared to the damage they do.

That said, London is geographically favourably placed. When I worked for a telecoms company in the City I could contact both Asia and the USA in the same business day.

Sadly, the big banks are not going to leave.

[stormymonday_2011]

HSBC were not bailed out last time .

It is true they have not received direct support from the government in terms of equity purchases but there have been many other types of aid given

All the banks have benefited from QE and other indirect support given by the BOE to their balance sheets.

Cheap borrowing at near ZIRP interest rates with extra liquidity from Uncle Mervyn when required looks very much like a bailout to me.

[_w_]

Actually the shares of Lloyds/HBOS and RBS that we own have actually made a profit based on current share prices. So we're up on that too.

Ah ah! :-)

We will forget that these share price profits were generated at the cost of insuring hundreds of billions of stupid loans and maintaining asset markets overpriced at the expense of every saver in the country, shall we? Happy world...

[_w_]

And if you lose our tax base because of everyone leaving, taxes on the rest of the country will have to go up, so it's not really 'giving the rest of the country a chance.' is it? Quite the opposite.

Why do you think other industries will blossom if London's biggest sector, international financial services, is no longer there?

They are some of our best clients, and I'm really worried that they might leave. Same for corporate law, Clifford Chance etc. They depend on them too.

The entire country has become uncompetitive because of these businesses. What do you think that does to tax intakes?

Again, get a few billions in taxes but forget the hundreds we are losing due to the indirect costs of these businesses being here. All is well, happy world...

[ken_ichikawa]

They need to look for a bigger host.

Who?

China? No way, China simply executes fraudsters, hell even a football referee was under threat of death because he took a match fixing bribe.

[_w_]

HSBC were not bailed out last time .

Of course they were. Had asset markets been allowed to fall to their natural levels, that irresponsibly over levered business would have failed like all the others.

[Fishman]

HSBC were not bailed out last time .

The ENTIRE global banking system was saved by a few props in key areas.

Without these props - well I hate to think what the consequences would have been.

[Mikhail Liebenstein]

If we get rid of them it will reduce the overall country's cost base, not mentioning the odd multi-trillion pound bailout that will keep us over-indebted for more than a generation.

Give the rest of the country a chance, get rid of these parasites. Let them f*ck up some other country, the UK is spent.

Indeed - they aren't productive and only got by by fleecing us and other investors globally. Let them go to China where they'd be shot for such fraud, or Saudi where the odd hand might go missing.

[Guest spp]

They have far more to worry about right now...SILVER!

[silver surfer]

If we squeeze out all the big international banks from UK, what will we be left with? Call centres? Cheap car manufacturing?

Does anyone think we should get rid of the 50% tax so we can retain good people in this country?

We shouldn't get rid of the 50% tax...and I pay it. Don't be spooked by these threats, HSBC aren't going anywhere. Banks aren't in London for the fish and chips, they're here because this is where the business is.