I am not a fan of most banks: the worlds illicit financial flows pass through their branches. Their tax haven operations have fuelled corruption. Their dealing rooms have distorted whole economies. Their lending has been prejudicial to many and sucked the lifeblood out of a great many businesses. Their predatory consumer lending has created personal crises. Despite which their backroom, day-to-day operations are essential, which is why they get away with all this.
Without exception, banks survived the 2008 crisis because they were bailed out. Since they work as a system they are only as good as the weakest link, and many of those failed so it is entirely safe to say that the rest would have done too. But they have clearly forgotten that. Not only has the clamour for the relaxation of regulation on them already begun within their boardrooms, they now want to continue taking risk knowing that they can do so without consequence, believing that another government bailout is only just around the corner for them whenever it might be needed.
HSBC is a bank I have always disliked. I loathed its secret Swiss banking. I spent a lot of time looking at the activities of its CEO and then chair, the Rev (yes, I kid you not) Stephen Green, who ended up as a Tory peer and government minister despite his heavy involvement in its Swiss operations.
And now his successors are at it again. As the FT reports today:
The Bank of England's pressure on HSBC to cancel its dividend for the first time in 74 years has reignited a debate at the top of the bank over whether it should redomicile to Hong Kong.
Several people familiar with the matter said the BoE's intervention had prompted anger among some board members and executives, with calls to reopen the question of whether the group's legal base should move from London.
HSBC was one of five UK-based lenders that agreed on Tuesday night to withhold 2019 dividends, bowing to pressure from the BoE's Prudential Regulation Authority, the UK's top financial supervisor.
The advantage is, I suspect, that the UK would then not have to bail out this rotten bank. But that's not the point. That point is that there are those in this bank - and I am quite sure that this story is well-sourced - who think they can still do what they wish, taking risk underwritten by society are large.
And then they wonder why there might be calls for reform, knowing that they can spend fortunes fighting those of us who make them.
This time we cannot go back to the way we were in 2007. This time our largest companies - including banks - have to really be changed. We literally can no longer afford them the way that they are.
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[…] is a comment that takes crassness into the realms of stupidity. I have already noted this morning that I am not a fan of banks. But what Sunak and Sharma are asking banks to do is take […]
They make 90% of their revenues in Asia, seems a strong argument why it should be listed and head office located there..
“taking risk underwritten by society are large.” – what does this mean?
I was trying to find the French HSBC documentary ‘The Gangsters of Finance’ only last night (it is on the TJN website) but I could not find a version with an English translation at all – very frustrating. It is interesting that the documentary is not widely available although Netflix and and an American version exists on Youtube.
A number of things sicken me about HSBC.
1. That George Osbourne spoke up for them when the Americans found that they had laundered drug money – the same Osbourne who destroyed our economy in the early 2010’s, made hard working people like me poorer and also laid the foundations for our inability to deal with Covid-19 today. Osbourne’s intervention seems to have worked – those who deserved punishment escaped punishment and those who were innocent suffered!! A perfect outcome for a modern, forward thinking amoral Tory.
2. Stephen Green (Sir – yes he’s a knight of the realm!! Mind you he has more of the ‘night’ of him than Michael howard ever did) – yes, Stephen, dear Stephen – he is meant to be a man of the cloth but I think he’s more a man of the hoof – a cloven one. This man to me encapsulates the evil created by obscene wealth. He is corrupted beyond redemption. If he was religious, he’d know he is going to hell but I suspect he thinks he is special – as those who are overpaid for their loyalty often do.
Added to that the very nice but dumb David Cameron made him a trade minister in his Government. This man made a speech in I think the House of Lords saying that inequality was a price that had to paid if life was to get better (failing of course to clarify that the ‘getting better’ bit only applied to Stephen himself and a few of his mates).
Yep – Stephen Green – what a piece of work. As for HSBC I agree with you. But one day I want to also see a thorough investigation into the Tories and HSBC in a select committee -one that hasn’t got the most accommodating Andrew Tyrie on it for once.
I have a lot of time for Richard Ayoade. Sad to see him fronting their current ad campaign to present them as soft and cuddly.
Mr Ethical would think not !
Agreed
Ayoade (whom I found hilarious in The Mighty Boosh – but little else) is an example of what happens to some people when they become successful. The money on offer can often make you forget your principles and scruples.
Why do you think the City of London and Wall Street are as they are?
https://www.youtube.com/watch?v=4evZt9vADR4
The Gangsters of Finance’
Can some one doe a english voice over so we can understand it?