HSBC retail arm spin-off talk fails to impress the City
Monday 09 December 2013
City insiders today played down talk that HSBC could be planning to float off a slug of its UK High Street business with a potential value of £20 billion.
It was reported that the bank had sounded out investors about floating 30 per cent of the business as a way of dealing with the Vickers Commission recommendation that banks ring-fence their retail operations away from their riskier investment banking activities.
HSBC declined to comment today.
It is believed that the bank, led by Stuart Gulliver, discussed a range of plans for dealing with ring-fencing at the end of last year but has no current plans to float off its UK arm.
Shailesh Raikundlia, analyst with Espirito Santo, pointed out that to ensure ring-fencing in this way HSBC would have to redomicile the rest of its business to Hong Kong.
He said: “The group’s main UK subsidiary, HSBC Bank PLC, is a lot broader in nature than a ring-fenced bank would be — it contains investment banking operations that would not be allowed within a ring-fence and also houses some continental European business.”
London is already braced for massive share offers from banks with the Government keen to sell its remaining 33 per cent stake in Lloyds, the separate flotation of TSB and their Williams & Glynn’s spin-off from Royal Bank of Scotland. Former Barclays chief executive Bob Diamond is also looking to raise some £150 million for his new African banking venture.
- 1 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 2 West poised to join forces with President Assad in face of Islamic State
- 3 Mother fed her daughter tapeworms to make her skinny for pageant
- 4 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 5 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
West poised to join forces with President Assad in face of Islamic State
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
Bin bag full of cats' heads discovered near Manchester's Curry Mile
iJobs Money & Business
£30000 - £45000 per annum: Harrington Starr: A global investment management fi...
£65000 - £75000 per annum: Harrington Starr: Senior Network Engineer-(CCIE, CC...
£70000 - £80000 per annum: Harrington Starr: Senior Network Analyst - (CCIE, C...
£60000 - £80000 per annum: Harrington Starr: Senior Network Engineer-(Design, ...