Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Israeli strikes on Gaza as seen on social media

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan? (part 2)

Read more

DEBATE

Israel and the Palestinians: How to Break the Cycle of Violence?

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan?

Read more

AFRICA NEWS

Somalia : Al Shebab attack on presidential palace

Read more

FOCUS

Sharia law to be enshrined in British legal system?

Read more

ENCORE!

How a comedy dud became one of France's biggest box office hits

Read more

AFRICA NEWS

Kenya: Clashes at anti-government rally in Nairobi

Read more

WEB NEWS

ISIS leader challenged over expensive-looking wristwatch

Read more

  • Israeli airstrikes continue in Gaza as rockets intercepted over Tel Aviv

    Read more

  • Argentina beat Netherlands on penalties to reach World Cup final

    Read more

  • Foiled French jihadist ‘targeted Louvre and Eiffel Tower’

    Read more

  • Obama in Texas to urge congressional action on child migrant crisis

    Read more

  • Iraq’s heritage 'in danger' from ISIS militants

    Read more

  • Froome crashes out of Tour de France

    Read more

  • South Sudan independence heroes ‘have lost their way’

    Read more

  • 100 years on, the Tour de France returns to the Western Front

    Read more

  • Dozens of blindfolded bodies found south of Baghdad

    Read more

  • Alps Murder wife had ex-husband who died on same day

    Read more

  • Both candidates say they won Indonesian presidential election

    Read more

  • Brazil players should never wear 'sacred uniform' again, press says

    Read more

  • Exiled Syrian opposition elects new president

    Read more

  • Ukraine imposes new conditions on peace talks with pro-Russia rebels

    Read more

  • Sarkozy's UMP party 'almost €80 million in debt'

    Read more

Business

Head of HSBC to be replaced by the end of the year

©

Text by News Wires

Latest update : 2010-09-24

British bank HSBC will replace its CEO Michael Geoghegan at the end of the year, according to British media, in a major shake-up of management at the bank, one of the biggest in the world.

AFP - HSBC chief executive Michael Geoghegan is to step down at the end of the year as part of a major shake-up of the bank's top management, reports said Friday.
  
He will be replaced by Stuart Gulliver, head of the group's investment bank, the Financial Times and BBC reported.
  
Finance director Douglas Flint will take over as chairman from Stephen Green, who announced this month he was stepping down to become Britain's trade minister at the start of next year, the reports said.
  
An HSBC spokesman said: "No decision has been made." But a person close to the bank's board told the FT the decisions were now 90 percent certain and another was cited as saying it was a "done deal."
  
The succession will reportedly be finalised at a board meeting in Shanghai next week. The bank's main regulator, Britain's Financial Services Authority, still has to approve the appointments, according to the FT.
  
The dramatic overhaul at the top of HSBC caps a tumultuous period for the bank since Green announced he was quitting, with neither of the two men widely expected to become the next chairman ending up in the job.
  
Hong Kong-based Geoghegan, 56, was regarded as a frontrunner and HSBC has a history of elevating its chief executive to chairman.
  
The FT reported this week that he had threatened to quit when the bank's board indicated it might pass him over and instead hand the chairman's job to HSBC non-executive director John Thornton.
  
The bank has dismissed the suggestion: "It is nonsense that (Geoghegan) threatened to resign unless he was appointed chairman."
  
Thornton, a former Goldman Sachs banker, was the other main contender for the job but choosing between him and Geoghegan proved too difficult for the bank's board, according to the FT.
  
Flint emerged as a compromise candidate, said the paper.
  
The promotion of Gulliver would be the second time in a month that a highly-paid investment banker has been elevated to chief executive of a major bank, following Bob Diamond's appointment at Barclays.
  
Diamond's appointment proved hugely controversial in Britain, where the US national is infamous for pocketing massive bonuses.
  
He was described earlier this year by then business minister Peter Mandelson as "the unacceptable face of banking" amid public outrage at bankers' bonuses.
  
The post of HSBC chairman became available when Green was appointed Britain's trade minister on September 7.
  
Green, who spent 28 years at Asia-focused HSBC, is leaving the bank in rude health after steering it through the global financial crisis without taking a government bailout.
  
HSBC, founded in Hong Kong and Shanghai in 1865, sees Asia as its most important region although it remains headquartered in London.
  
The HSBC shake-up is the just the latest to rock the world of banking.
  
In the past few weeks, John Varley has said he is retiring as chief executive of Barclays and Eric Daniels has announced his retirement from the same role at Lloyds.
  
Alessandro Profumo stepped down from his role as chief executive of Italy's Unicredit on Tuesday after a clash with shareholders.

Date created : 2010-09-24

Comments

COMMENT(S)