HSBC Head Back To Where They Came

Discussion in 'Politics & The Economy' started by EarthRod, Jun 9, 2015.

  1. EarthRod

    EarthRod
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    HSBC have finally made up their minds to pull out and cut jobs:

    http://www.bbc.co.uk/news/business-33058957

    "HSBC plans to cut 8,000 jobs in the UK in savings drive."

    "A total of 25,000 jobs could be axed globally, meaning close to 10% of HSBC's 266,000 workers will go."

    "The bank will also 'ringfence' its UK operations and sell businesses in Turkey and Brazil, it said on Tuesday
    ".
     
  2. Cliff

    Cliff
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    I suspect Standard Chartered will leave as well.

    The UK tax income will be a lot poorer for it. Still I don't mind paying more tax, more VAT and accept cuts in welfare to make up. At least I know we don't have nasty banks on our little island.;)

    Sorry for those that have lost their jobs.
     
  3. EarthRod

    EarthRod
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    HSBC troubles are continuing.

    US investors are suing the bank over mis-selling toxic mortgage debts.
     
  4. kav

    kav
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    All the banks are feeling the squeeze at the moment. Expect several more announcements like this in the weeks and months to come.
     
  5. EarthRod

    EarthRod
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    I read recently that about 60% of profits made by UK big banks goes towards the costs of past mistakes.

    Something like £38bn has been paid out over the last 3 years due to scandals, various failings and fines.

    The people who will pay the price of these failings are the employees. Many thousands of bank jobs are borderline as the big banks 'adjust' to make up.
     
  6. Noballslabour

    Noballslabour
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    Id like to think thst the boneheaded banker bashers would have a rethink. Their sacred welfare state would / will be much the poorer without the Billions generated for UK PLC by the banks, not to mention all the corporation tax, NI, banking levy paid and employment provided. I suspect though thst some would be happy to cut off their noses to spite their face.
     
  7. Cliff

    Cliff
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    So we lose almost £1B a year from HSBC (financial services are around 8% of UK GDP).
    Lose 8000 jobs here, now.

    But if they do leave then many branches, which have to be ring fenced and self supporting will close as they won't be economic to run. This will result in another round of redundancies.
    Is it worth it because we don't like banks?
     
  8. pragmatic

    pragmatic
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  9. EarthRod

    EarthRod
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    Something has to be done to stop the continual failure and corruption taking place in the big banks and the poor old general public had to 'bail' them out. The ring-fencing rules are designed to help with that.

    Lets face it, the big banks have brought it upon themselves with their massive market manipulations and deserve all these new regulations and taxes.
     
  10. Noballslabour

    Noballslabour
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    HSBC did not need or take any bailout money. Plus only 3% of their profits come from UK, but they pay the Bank levy on 100% of worldwide profits. If i were them id tell the uk to jog on.
     
  11. EarthRod

    EarthRod
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    Yes, I am aware of all that. My point was about the new ring-fencing rules.

    Also, HSBC pay the levy on all profits because they are based in the UK and, like any business based in the UK, pay UK taxes and levies.

    Mind you, about one in four of Britain's biggest companies paid no or very little taxes because they make no profit in the UK, so they don't owe any tax.

    (Cough)
     
  12. Noballslabour

    Noballslabour
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    The ring fencing rules will make naff all difference. They would not have prevented PPI .
     
  13. Enki

    Enki
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    Indeed, Investors wanting a better returns, capatilsm doing its thing and well timed squeeze on Osbournes danglies.

    The Hong Kong Shanghai Bank has a murky past, pretty sure shareholders are not to keen with happy go lucky jaunts in Mexico and more recently Switzerland, so a change in name may help with conscience.
     
  14. EarthRod

    EarthRod
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    The ring-fence is to prevent further bail-outs by the taxpayer and has nothing to do with PPI.

    For the sake of sanity - I give up.
     
  15. Enki

    Enki
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    No dont give up.:eek:

    The separation of retail and investment banking together with the new regulations for seniors bankers, this new setup applies special responsibilities to senior bankers which could make them liable to spend some time in confined space by involuntary restraint, if they are found to be responsible for making the bank crash. A bit personal responsibility and they are off quicker, before you can say, Puedo cuidar de su dinero, usted puede confiar en mí con su abuela.:)

    But I think Osbourne will give up:facepalm:.
     
  16. IronGiant

    IronGiant
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    He's giving up arguing with Noballslabour, not in general (I hope).
     
  17. nabby

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    I'm glad I'm not the only one who was beginning to struggle :)

    Anyhoo, back OT, I think you called it pretty much right in post 5 and post 9. There comes a point where if an industry isn't acting responsibly it needs to be regulated more tightly at least in the short term.

    WRT to job losses, they're always sad and I have total sympathy with many if not all of the people who will be let go. However, baks have been working in hiring and firing cycles since as far back as I can remember to the 80s. And let's face it, as more tasks becomes less labour intensive, why should bank workers be exempt from the same issues other jobs and sectors face?
     
  18. EarthRod

    EarthRod
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    "Puedo cuidar de su dinero, usted puede confiar en mí con su abuela."
    Translation: I can take care of your money, you can trust me with your grandmother. :)

    I also think Osborne will do a U-turn. After all, the Tories are very good at U-turns and have lots of experience.
     
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  19. IronGiant

    IronGiant
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    Mostly firing as villages bank disappear and smaller town branches are consolidated with larger ones... And we can't just blame internet banking for that.
     
  20. EarthRod

    EarthRod
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    True. We live in times of change and there is no longer any Trade Union reaction to these changes, so the CEOs can do anything they like - even the government is in their 'pocket'.

    Strange that despite the huge fines imposed, the big banks are still in profit and the shares continue to go up!
     
  21. nabby

    nabby
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    Up to a point, yes. Also with consolidation of different banking groups. I was working at NatWest when RBS merged with them. Lots of job losses then, not only due to branch closures but duplication in back-office functions, investment banking, lending and mortgages, etc.
     
  22. IronGiant

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    Good point.
     
  23. nabby

    nabby
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    Not just CEOs but shareholder pressure to continue delivering dividends. Which, let's face it, many of us also rely on for our own pension pots. It's a messed up, muddled up, shook up world, for sure :)
     
  24. Cliff

    Cliff
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    Lets hope so and common sense prevails!
     
  25. Greg Hook

    Greg Hook
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    There has been lots of trade union reaction. In fact the Unite Union have been on the news all day about it.
     
  26. Enki

    Enki
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  27. EarthRod

    EarthRod
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    Pensions - oh dear, I forgot about pensions!

    OK - lets not upset the banks, after all they are experts with assets and money. All sweetness and light. :cool:
     
  28. IronGiant

    IronGiant
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    Sarcasm, Alan? :)
     
  29. EarthRod

    EarthRod
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    Sarcasm 20%, irony 90%.

    :)
     
  30. IronGiant

    IronGiant
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    Allowing for inflation, I like it...
     

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