Space For Rent

Space For Rent
Saturday, April 25, 2015, Baishakh 12, 1422 BS, Rajab 5, 1436 Hijr

HSBC considers moving headquarters out of UK
Published : Saturday, 25 April, 2015,  Time : 12:00 AM,  View Count : 15
April 24: HSBC has said it is considering moving its headquarters out of London. The bank said the review followed "regulatory and structural reforms" since the financial crisis.
HSBC's board has asked its management to "look at where the best place is for HSBC to be headquartered in this new environment," the bank said.
"The question is a complex one and it is too soon to say how long this will take or what the conclusion will be; but the work is under way."
Shares in the company jumped 3.7 per cent higher on the news. "Clearly their investors are saying 'maybe you should just get out of London and have a fresh start'", said BBC business editor, Kamal Ahmed.
The bank may decide to sell its retail bank, originally called Midland Bank, he added. HSBC, along with the UK's other banks, will be required to separate its British retail business from the rest of the group by 2019.
The review also follows plans announced in the Budget to increase the bank levy from 0.156 per cent to 0.21 per cent.
The bank has had its headquarters in the UK since 1992 but it makes most of its money overseas. Asia accounts for about 80 per cent of its profit.
Media caption The BBC's Kamal Ahmed says HSBC has been under huge pressure - HSBC's profit dropped 17 per cent in 2014. HSBC blamed its "challenging year" on the $2.4bn it was forced to pay in fines and settlements in relation to foreign exchange manipulation and mis-selling of payment protection insurance.
The scandal-hit bank has also faced allegations that it helped people evade UK tax using hidden HSBC accounts in Geneva.
When asked about his view on HSBC's potential move on 5Live, Liberal Democrat leader Nick Clegg said: "They can make their own mind up? but I hope they will stay in the UK." ?BBC

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