3k more jobs to go at HSBC

Mallotum_X

HSBC is cutting 3,166 UK jobs as it continues efforts to reduce costs.

The bank said the positions would mostly go from its wealth management division, but that it hoped to redeploy more than 2,000 of the affected staff.

The cuts are part of HSBC's continuing three-year cost-cutting plan, and follows the loss of 2,200 jobs in 2012.

HSBC, which is Europe's biggest bank, currently employs more than 47,000 staff across the UK.

http://www.bbc.co.uk/news/business-12345678

Hopefully for those affected many will get de-deployed, so the headline figure is worst case, but at best its still over 1k jobs going.

Generali

About 30% of jobs in finance have gone from The City IIRC.

Be careful for what you wish. Finance is about 10% of GDP and if you get rid of a chunk of it there is no guarantee that it will be replaced by something else. My bit of GDP in the UK didn't fancy its chances and left.

Conrad

Gen for about the last 20 years I've noticed this merry-go-round whereby one moment the Banks are back in love with building a wealth managment division, the next they change thier minds. Time and again this has happened.

Give it 3 years and we'll have a new whizz kid at HSBC declaring WM is the way to go.

Personally I've never seen how they compete with a proper IFA / chartered investment bod. The overheads around a large employed workforce with all the HR, legal, paternity and other costs must make it quite an awkward model.

Generali

Conrad wrote: »

Gen for about the last 20 years I've noticed this merry-go-round whereby one moment the Banks are back in love with building a wealth managment division, the next they change thier minds. Time and again this has happened.

Give it 3 years and we'll have a new whizz kid at HSBC declaring WM is the way to go.

Personally I've never seen how they compete with a proper IFA / chartered investment bod. The overheads around a large employed workforce with all the HR, legal, paternity and other costs must make it quite an awkward model.

It's all about cross-selling, the so-called bancassurance model.

I have my doubts whether that model is good for shareholders or customers but so be it.

Thrugelmir

Generali wrote: »

It's all about cross-selling, the so-called bancassurance model.

I have my doubts whether that model is good for shareholders or customers but so be it.

Banks are returning to their roots. The splitting of retail and investment is envitable.

Interesting that building societies are back in vogue for mortgage lending. Starting from a low base obviously. Though returning as well to their roots of being community based and local.

ILW

Conrad wrote: »

Gen for about the last 20 years I've noticed this merry-go-round whereby one moment the Banks are back in love with building a wealth managment division, the next they change thier minds. Time and again this has happened.

Give it 3 years and we'll have a new whizz kid at HSBC declaring WM is the way to go.

Personally I've never seen how they compete with a proper IFA / chartered investment bod. The overheads around a large employed workforce with all the HR, legal, paternity and other costs must make it quite an awkward model.

They all want to be Goldman Sachs.

IronWolf

But I thought all the fat cat bankers were rolling about laughing with their bonuses.

Seems the reality is different.

thor

IronWolf wrote: »

But I thought all the fat cat bankers were rolling about laughing with their bonuses.

.

which is exactly what sir fred is doing.

grizzly1911

Mallotum_X wrote: »

http://www.bbc.co.uk/news/business-12345678

Hopefully for those affected many will get de-deployed, so the headline figure is worst case, but at best its still over 1k jobs going.

A commentator on BBC radio news believed that most of the people would not be qualified for "new roles" and that they would not be in the same places, with individuals affected "unable" to re locate.

I wouldn't be surprised if that were correct.

chewmylegoff

Conrad wrote: »

Gen for about the last 20 years I've noticed this merry-go-round whereby one moment the Banks are back in love with building a wealth managment division, the next they change thier minds. Time and again this has happened.

Give it 3 years and we'll have a new whizz kid at HSBC declaring WM is the way to go.

Personally I've never seen how they compete with a proper IFA / chartered investment bod. The overheads around a large employed workforce with all the HR, legal, paternity and other costs must make it quite an awkward model.

If you are rich (at least a few million of liquid assets) then the advantages of a wealth management banker over an IFA are:

I) leverage

II) DMA via the investment bank, incl FX

III) a wealth management banker who is your b1tch - they will do literally anything for you - get you a membership at an "introductions only" club, help you buy and then rent out your property, collect your art from the dealer, arrange an internship for your kids at the bank, turn up someplace with a suitcase full of cash (if they can circumvent the AML controls of course), etc. because they are ripping you off with awful structured products they will do all this for "free".

Generali

chewmylegoff wrote: »

If you are rich (at least a few million of liquid assets) then the advantages of a wealth management banker over an IFA are:

I) leverage

II) DMA via the investment bank, incl FX

III) a wealth management banker who is your b1tch - they will do literally anything for you - get you a membership at an "introductions only" club, help you buy and then rent out your property, collect your art from the dealer, arrange an internship for your kids at the bank, turn up someplace with a suitcase full of cash (if they can circumvent the AML controls of course), etc. because they are ripping you off with awful structured products they will do all this for "free".

My mate worked in an office with the Private Bankers for an Arab bank in London after he got made redundant.

Basically they existed in order to give Arab playboys bags filled with £50 notes and to do some simple execution work for 'wealth management'. Everyone used to look nervous when the phone rang!

The Private Bankers ended up doing all sorts. They were basically spare servants in case an extra one was needed.