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 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 3 Belgium fan Axelle Despiegelaere lands L'Oreal campaign after World Cup viral photo
- 4 Britney Spears sings 'Alien' without Auto-Tune in embarrassingly brilliant leaked audio clip
- 5 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
‘Ryan Gosling got someone pregnant and it's not me. Brazil you think you’re devastated…’
Israel-Palestine crisis: ‘We just want it to end… We don’t deserve to live like this’
Israel-Palestine crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
Vanessa Feltz criticises 'vile' reaction to Rolf Harris allegations
iJobs Money & Business
£60000 - £75000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£60000 per annum: Harrington Starr: A leading provider in investment managemen...
£600 - £700 per day: Harrington Starr: AVS, JVS Openlink Endur Developer JVS, ...
£30000 per annum: Harrington Starr: A global leader in trading platforms and e...