May 26, 2020
City Bulletin: HSBC prepares to restart radical restructuring
Back in February, the bank announced plans to axe 35,000 jobs, cut $4.5bn in costs and $100bn of risk-weighted assets by shrinking its US and European business and its investment bank. Now the board of Europe's largest lender is pressing executives to restart the restructuring - and come up with even more radical changes. Meanwhile the dividend has gone, the bank's shares are at their lowest in more than a decade, and HSBC faces up to $11bn of provisions for bad loans this year if its worst-case scenario comes to pass. The change in leadership comes as new backer and executive chairman Lawrence Stroll has engineered a board clear out. The upbeat start to the day comes as analysts from Goldman Sachs point to encouraging signs from countries that have reopened, while Barclays' analysts highlight a pick-up in UK economic activity in May. And is this the end of the City lunch? Restaurateurs worry that the crisis will spell the end of lucrative business lunches and business entertaining as fewer people come to the office.
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