HSBC move out of London ‘entirely speculative’
Business digest: Bank to remain in London, but highlights London’s need to keep competitive edge
HSBC has insisted that its headquarters will remain in London for the foreseeable future, but admitted that new rules in the UK meant that the bank was "increasingly asked by shareholders and investors about the likely additional cost".
Chairman Douglas Flint and chief executive Stuart Gulliver spoke yesterday amidst rumours, prompted by a report in the Sunday Telegraph, that it was "likely" that the bank would soon return to Hong Kong for financial reasons. They dismissed the story as "entirely speculative and presumptuous".
Rising costs, new bank levies and the threat of a new watchdog, the Prudential Regulatory Authority (PRA), have prompted banks to complain that they are being unfairly punished. The rumours about an HSBC relocation came as Mervyn King made yet another public attack on banks for causing the financial crisis.
A spokesman from HM Treasury said that the UK's position as a "world-leading financial centre" had to be balanced with the need for banks to "pay their fair share of deficit reduction".
Read a full report at BBC News. ·
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