HSBC bankers say there are 3 lists. They want to know which one they're on
It's been two weeks since it became apparent that HSBC is closing its M&A and equity capital markets businesses in the US, the UK and Europe. Insiders there say they are none the wiser about what comes next.
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"There's radio silence from the leadership," says one London HSBC associate. "I'm just applying for jobs and already have some interviews."
Managing directors (MDs) in HSBC's London investment bank are also in the dark. However, some have heard that things are moving behind the scenes. There's talk of three lists being made, but no one knows who's on them.
"Everyone wants to know whether they're on the A list, the B list or the C list," says one HSBC MD. "People who are let go now, people who are phased out and people who continue in a new financing-lead HSBC." No one wants to be on the C-list anyway, he claims.
HSBC didn't respond to a request to comment on the lists' existence. However, multiple senior people have heard rumours of them. "Perimeters are being drawn around immediates, transients and longer term people," says another MD. He, too, says there's limited enthusiasm for the long term category: "The new strategy is the worst you could imagine."
All is likely to become clear before HSBC announces its results on February 19th. In the meantime, some MDs at the bank are still closing deals. Christopher Fincken, a UK M&A MD, announced yesterday that his team had completed the acquisition of £354m of Loungers plc by Fortress. Whether Fincken and his colleagues receive a bonus for their work remains open to question. "Bonuses are likely to be a fraction of last year, at best," suggests a senior colleague on another team.
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