Rumours of mass firings at HSBC are being firmed up.
HSBC has been keen to leave the UK but it isn't that simple. The road map plan was to slim down the UK operation and expand overseas where regulation and tax were more friendly. Unfortunately, Hong Kong its old home has said it is too big for them to regulate and the FSA are saying we have to give you permission and we will not because HMRC and the Treasury are saying you will have to pay lots of capital gains tax and we will generally make life very difficult.
So we have banks that are too big to fail and too big to regulate.
What a mess!
Regulatoe complains about the work load (cityam)
HSBC to save money (cityam)
HSBC to move to the Isle of Man and regulate itself.