How committed is HSBC to investment banking?
WHEN it reports record bank profits at the beginning of next month, HSBC will paint a healthy picture of its international retail and corporate banking business. But what of its latest attempt to break into the big league of investment banking? Ever since John Studzinski, the highly paid co-head of investment banking at HSBC, was recently moved to become special adviser to chairman-elect Stephen Green, there has been fevered speculation about the bank’s commitment. Sir John Bond, who retires as chairman this summer, took some convincing about returning to investment banking but eventually he decided to back a strategy to rebuild a presence. The logic is compelling. The bank can refer corporate clients into the arms of a friendly banker keen to advise and devise deals. HSBC has a global presence and therefore its investment bank should be mandated to some of the biggest merger-and-acquisitions work on the globe. But, not for want of trying, it has proved hard work. Now it is up to Green
