HSBC Unveils Shake-Up

HSBC today restructured its corporate, investment banking and markets operation into three new business lines. The entire division will continue to be run by Stuart Gulliver and John Studzinski as co-heads.

The new global banking division includes corporate and institutional banking, global sector management investment banking, and project and asset finance.

It will be managed by Robin Phillips, currently global co-head of global industrials group, and Mukhtar Hussain, currently co-head of corporate, investment banking and markets in the Middle East. They will report to Studzinski.

Charlie Laughton-Scott, currently global head of corporate and institutional banking, will become deputy head of global banking.

A global markets division will include trading and underwriting activities in debt and equities, and markets-related financing businesses.

Mike Powell, currently head of global markets in Europe and the Middle East, becomes head of the new division, reporting to Gulliver. Danny Palmer, currently global head of equity capital markets, becomes head of financing, reporting to Powell.

The bank said Mark Bucknall, co-head of global investment banking, "has made a personal decision to leave the banking industry and will retire from HSBC". He leaves the bank on May 1.

Global Transaction Banking, the third division, remains unchanged and will be managed by Iain Stewart, who reports to Studzinski.

Gulliver had been expected to take over as sole head of the business, with Studzinski expected to move to a new role as adviser to HSBC new chief executive Stephen Green.

Gulliver has been building the investment banking arm with Studzinski for the past three years.

In the memo to staff, Studzinski and Gulliver said: "Stephen Green has asked us to tell you that the board remains fully committed to the development of the corporate, investment banking and markets division which is a strategic priority for HSBC. [The division] is streamlining its management to optimize its five-year development strategy. These changes underscore the group's support for the corporate, investment bank and markets strategy, not the opposite."

HSBC is currently working on two of the world's largest takeover deals: As the sole adviser to Germany's E.On in its $34.7 billion bid for Spanish electricity company Endesa; and as adviser to Mittal Steel on its $25 billion bid for Paris-listed rival Arcelor.

HSBC is also lending $14.8 billion to help finance E.On's bid, the most the bank has provided in acquisition financing.

HSBC is due to unveil full-year results on March 6.