Universal and Investment Banking

download Universal and Investment Banking

of 24

Transcript of Universal and Investment Banking

  • 7/28/2019 Universal and Investment Banking

    1/24

    UNIVERSAL AND INVESTMENTBANKING

    HSBC BANK

    http://en.wikipedia.org/wiki/File:Bund_at_night.jpg
  • 7/28/2019 Universal and Investment Banking

    2/24

    GROUP MEMBERSNAME ROLL NO

    PINAL PARSANA 27

    TAMANNA PATEL 32

    SHIVANI RAJGURU 38

    SWATI SURELIA 47

    MANSI SHAH 54

    PROF: RUPA MAM

  • 7/28/2019 Universal and Investment Banking

    3/24

    A UNIVERSAL BANK

    Bank participates in many kinds of bankingactivities and is both a commercial bank and aninvestment bank These are also called full-servicefinancial firms, although there can also be full-service investment banks which provide assetmanagement, trading, and underwriting.The concept is most relevant in the UnitedKingdom and the United States, where historicallythere was a distinction drawn between pureinvestment banks and commercial banks. In theUS, this was a result of the GlassSteagall Act of1933. In both countries, however, the regulatorybarrier to the combination of investment banksand commercial banks has largely been removed,and a number of universal banks have emerged inboth jurisdictions. However, at least up until theglobal financial crisis of 2008, there remained anumber of large, pure investment banks.In other countries, the concept is less relevant asthere is not regulatory distinction betweeninvestment banks and commercial banks. Thus,banks of a very large size tend to operate asuniversal banks, while smaller firms specialised as

    http://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Investment_bankhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Investment_bankhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Investment_bankhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Investment_bankhttp://en.wikipedia.org/wiki/Commercial_bank
  • 7/28/2019 Universal and Investment Banking

    4/24

    commercial banks or as investment banks. This isespecially true of countries with a EuropeanContinental banking tradition. Notable examplesof such universal banks include BNP Paribas andSociete Gnrale of France, HSBC and RBS of theUnited Kingdom, Deutsche Bank of Germany, andUBS and Credit Suisse of Switzerland.Following the 1907 financial crisis, the U.S.Monetary Commission wanted to understand themajor financial systems of the world. A treatise byJakob Riesser, the director of a Berlin bank,argued that the German universal banking systempossessed beneficial characteristics that allowed itto efficiently provide inexpensive capital toindustry and promote growth. AlexanderGerschenkron also advanced the hypothesis thatuniversal banking was critical to Germany'sindustrialization. More recently, Caroline Fohlinhas questioned the validity of the Gerschenkronhypothesis.Universal banking and relationship banking oftencoexist, but can exist independently. The provisionof many services by universal banks can lead tolong-term relationships between universal banksand firms.

    http://en.wikipedia.org/wiki/Continental_Europehttp://en.wikipedia.org/wiki/Continental_Europehttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/wiki/Soci%C3%A9t%C3%A9_G%C3%A9n%C3%A9ralehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/Royal_Bank_of_Scotland_Grouphttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Deutsche_Bankhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/UBShttp://en.wikipedia.org/wiki/Credit_Suissehttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/w/index.php?title=Jakob_Riesser&action=edit&redlink=1http://en.wikipedia.org/wiki/Alexander_Gerschenkronhttp://en.wikipedia.org/wiki/Alexander_Gerschenkronhttp://en.wikipedia.org/w/index.php?title=Caroline_Fohlin&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Relationship_banking&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Relationship_banking&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Caroline_Fohlin&action=edit&redlink=1http://en.wikipedia.org/wiki/Alexander_Gerschenkronhttp://en.wikipedia.org/wiki/Alexander_Gerschenkronhttp://en.wikipedia.org/w/index.php?title=Jakob_Riesser&action=edit&redlink=1http://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Credit_Suissehttp://en.wikipedia.org/wiki/UBShttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Deutsche_Bankhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Royal_Bank_of_Scotland_Grouphttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Soci%C3%A9t%C3%A9_G%C3%A9n%C3%A9ralehttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/wiki/Continental_Europehttp://en.wikipedia.org/wiki/Continental_Europe
  • 7/28/2019 Universal and Investment Banking

    5/24

    HSBC BANK

    Is a British multinational banking and financialservices company headquartered in London,United Kingdom. As of 2012, it was the world'sthird-largest publicly held bank and sixth-largestpublic company, according to a composite measureby Forbes magazine.HSBC is a universal bank and is organised withinfour business groups: Commercial Banking; GlobalBanking and Markets (investment banking);Retail Banking and Wealth Management; andGlobal Private Banking. It has around 7,200 officesin 85 countries and territories across Africa, Asia,Europe, North America and South America, andaround 89 million customers. As of 31 March 2012it had total assets of $2.637 trillion, of whichroughly half were in Europe, the Middle East andAfrica, and a quarter each in Asia-Pacific and theAmericas.HSBC Holdings plc was founded in London in 1991by The Hongkong and Shanghai BankingCorporation to act as a new group holdingcompany and to enable the acquisition of UK-based Midland Bank.The origins of the bank lie in

    http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Universal_bankhttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/The_Hongkong_and_Shanghai_Banking_Corporationhttp://en.wikipedia.org/wiki/The_Hongkong_and_Shanghai_Banking_Corporationhttp://en.wikipedia.org/wiki/The_Hongkong_and_Shanghai_Banking_Corporationhttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Midland_Bankhttp://en.wikipedia.org/wiki/Midland_Bankhttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/The_Hongkong_and_Shanghai_Banking_Corporationhttp://en.wikipedia.org/wiki/The_Hongkong_and_Shanghai_Banking_Corporationhttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Universal_bankhttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Multinational_corporation
  • 7/28/2019 Universal and Investment Banking

    6/24

    Hong Kong and Shanghai, where branches werefirst opened in 1865. Today, HSBC remains thelargest bank in Hong Kong, and recent expansionin mainland China, where it is now the largestinternational bank, has returned it to that part ofits roots.HSBC has a primary listing on the London StockExchange and is a constituent of the FTSE 100Index. As of 6 July 2012 it had a marketcapitalisation of 102.7 billion, the second-largestof any company listed on the London StockExchange. It has secondary listings on the HongKong Stock Exchange (where it is a constituent ofthe Hang Seng Index), the New York StockExchange, Euronext Paris and the Bermuda StockExchange

    HISTORY

    For more information on the history of HSBC priorto the founding of HSBC Holdings in 1991, see TheHongkong and Shanghai Banking Corporation.The HSBC Building in Shanghai, the headquartersof the Shanghai branch of The Hongkong andShanghai Banking Corporation from 1923 to 1955

    http://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Mainland_Chinahttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/Market_capitalisationhttp://en.wikipedia.org/wiki/Market_capitalisationhttp://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchangehttp://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchangehttp://en.wikipedia.org/wiki/Hang_Seng_Indexhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/Euronext_Parishttp://en.wikipedia.org/wiki/Bermuda_Stock_Exchangehttp://en.wikipedia.org/wiki/Bermuda_Stock_Exchangehttp://en.wikipedia.org/wiki/The_Hongkong_and_Shanghai_Banking_Corporationhttp://en.wikipedia.org/wiki/The_Hongkong_and_Shanghai_Banking_Corporationhttp://en.wikipedia.org/wiki/HSBC_Building,_the_Bundhttp://en.wikipedia.org/wiki/HSBC_Building,_the_Bundhttp://en.wikipedia.org/wiki/The_Hongkong_and_Shanghai_Banking_Corporationhttp://en.wikipedia.org/wiki/The_Hongkong_and_Shanghai_Banking_Corporationhttp://en.wikipedia.org/wiki/Bermuda_Stock_Exchangehttp://en.wikipedia.org/wiki/Bermuda_Stock_Exchangehttp://en.wikipedia.org/wiki/Euronext_Parishttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/Hang_Seng_Indexhttp://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchangehttp://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchangehttp://en.wikipedia.org/wiki/Market_capitalisationhttp://en.wikipedia.org/wiki/Market_capitalisationhttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/Mainland_Chinahttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Hong_Kong
  • 7/28/2019 Universal and Investment Banking

    7/24

    The Hongkong and Shanghai BankingCorporation was founded by Scotsman Sir ThomasSutherland in the then British colony of HongKong on 3 March 1865, and in Shanghai onemonth later. In 1980, HSBC acquired a 51%shareholding in US-based Marine Midland Bank,which it extended to full ownership in 1987.HSBC Holdings plc was established in the UnitedKingdom in 1991 as the parent company to TheHongkong and Shanghai Banking Corporation inpreparation for its purchase of the UK-basedMidland Bank and the impending transfer ofsovereignty of Hong Kong to China. HSBC Holdings'acquisition of Midland Bank was completed in1992 and gave HSBC a substantial market presencein the United Kingdom. As part of the takeoverconditions for the acquisition, HSBC Holdings plcwas required to relocate its world headquartersfrom Hong Kong to London in 1993.Major acquisitions in South America started withthe purchase of the Banco Bamerindus of Brazil for$1bn in March 1997 and the acquisition of RobertsSA de Inversiones of Argentina for $600m in May1997. In May 1999, HSBC expanded its presence inthe United States with the purchase of RepublicNational Bank of New York for $10.3bn.

    http://en.wikipedia.org/wiki/Thomas_Sutherland_%28banker%29http://en.wikipedia.org/wiki/Thomas_Sutherland_%28banker%29http://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Marine_Midland_Bankhttp://en.wikipedia.org/wiki/Midland_Bankhttp://en.wikipedia.org/wiki/Transfer_of_sovereignty_of_Hong_Konghttp://en.wikipedia.org/wiki/Transfer_of_sovereignty_of_Hong_Konghttp://en.wikipedia.org/wiki/Transfer_of_sovereignty_of_Hong_Konghttp://en.wikipedia.org/wiki/Transfer_of_sovereignty_of_Hong_Konghttp://en.wikipedia.org/wiki/Midland_Bankhttp://en.wikipedia.org/wiki/Marine_Midland_Bankhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Thomas_Sutherland_%28banker%29http://en.wikipedia.org/wiki/Thomas_Sutherland_%28banker%29
  • 7/28/2019 Universal and Investment Banking

    8/24

    2000 to 2010

    The HSBC Main Building in Hong Kong, which wasdesigned by Norman Foster and completed in 1985Expansion into Continental Europe took place inApril 2000 with the acquisition of CrditCommercial de France, a large French bank for6.6bn. In July 2001 HSBC bought Demirbank, aninsolvent Turkish bank. In July 2002, ArthurAndersen announced that HSBC USA, Inc., througha new subsidiary, Wealth and Tax Advisory ServicesUSA Inc. (WTAS), would purchase a portion ofAndersen's tax practice. The new HSBC PrivateClient Services Group would serve the wealth andtax advisory needs of high net worth individuals.Then in August 2002 HSBC acquired GrupoFinanciero Bital, SA de CV, Mexico's third largest

    http://en.wikipedia.org/wiki/HSBC_Main_Building,_Hong_Konghttp://en.wikipedia.org/wiki/Norman_Foster_%28architect%29http://en.wikipedia.org/wiki/Continental_Europehttp://en.wikipedia.org/wiki/Cr%C3%A9dit_Commercial_de_Francehttp://en.wikipedia.org/wiki/Cr%C3%A9dit_Commercial_de_Francehttp://en.wikipedia.org/wiki/Demirbankhttp://en.wikipedia.org/wiki/Insolventhttp://en.wikipedia.org/wiki/WTAShttp://en.wikipedia.org/wiki/File:HK_HSBC_Main_Building_2008.jpghttp://en.wikipedia.org/wiki/WTAShttp://en.wikipedia.org/wiki/Insolventhttp://en.wikipedia.org/wiki/Demirbankhttp://en.wikipedia.org/wiki/Cr%C3%A9dit_Commercial_de_Francehttp://en.wikipedia.org/wiki/Cr%C3%A9dit_Commercial_de_Francehttp://en.wikipedia.org/wiki/Continental_Europehttp://en.wikipedia.org/wiki/Norman_Foster_%28architect%29http://en.wikipedia.org/wiki/HSBC_Main_Building,_Hong_Kong
  • 7/28/2019 Universal and Investment Banking

    9/24

    retail bank for $1.1bn. In November 2002 HSBCexpanded further in the United States. Under thechairmanship of Sir John Bond, it spent 9 billion(US$15.5 billion) to acquire Household FinanceCorporation (HFC), a US credit card issuer andsubprime lender. In a 2003 cover story,The Bankernoted "when banking historians look back, theymay conclude that [it] was the deal of the firstdecade of the 21st century". Under the new name ofHSBC Finance, the division was the second largestsubprime lender in the US.The new headquarters of HSBC Holdings at 8Canada Square, London officially opened in April2003.In September 2003 HSBC bought Polski Kredyt BankSA of Poland for $7.8m. In June 2004 HSBCexpanded into China buying 19.9% of the Bank ofCommunications of Shanghai. In the UnitedKingdom HSBC acquired Marks & Spencer RetailFinancial Services Holdings Ltd for 763m inDecember 2004. Acquisitions in 2005 includedMetris Inc, a US credit card issuer for $1.6bn inAugust and 70.1% of Dares Salaam InvestmentBank of Iraq in October. In April 2006 HSBC boughtthe 90 branches in Argentina of Banca Nazionaledel Lavoro for $155m. In December 2007 HSBCacquired The Chinese Bank in Taiwan. In May

    http://en.wikipedia.org/wiki/HSBC_Financehttp://en.wikipedia.org/wiki/HSBC_Financehttp://en.wikipedia.org/wiki/Subprimehttp://en.wikipedia.org/wiki/The_Bankerhttp://en.wikipedia.org/wiki/The_Bankerhttp://en.wikipedia.org/wiki/HSBC_Financehttp://en.wikipedia.org/wiki/8_Canada_Squarehttp://en.wikipedia.org/wiki/8_Canada_Squarehttp://en.wikipedia.org/wiki/Bank_of_Communicationshttp://en.wikipedia.org/wiki/Bank_of_Communicationshttp://en.wikipedia.org/wiki/Banca_Nazionale_del_Lavorohttp://en.wikipedia.org/wiki/Banca_Nazionale_del_Lavorohttp://en.wikipedia.org/wiki/Banca_Nazionale_del_Lavorohttp://en.wikipedia.org/wiki/Banca_Nazionale_del_Lavorohttp://en.wikipedia.org/wiki/Bank_of_Communicationshttp://en.wikipedia.org/wiki/Bank_of_Communicationshttp://en.wikipedia.org/wiki/8_Canada_Squarehttp://en.wikipedia.org/wiki/8_Canada_Squarehttp://en.wikipedia.org/wiki/HSBC_Financehttp://en.wikipedia.org/wiki/The_Bankerhttp://en.wikipedia.org/wiki/Subprimehttp://en.wikipedia.org/wiki/HSBC_Financehttp://en.wikipedia.org/wiki/HSBC_Finance
  • 7/28/2019 Universal and Investment Banking

    10/24

    2008 HSBC acquired IL&FS Investment, an Indianretail broking firm.In 2005 Bloomberg Markets magazine accusedHSBC of money-laundering for drug dealers andstate sponsors of terrorism. Then-CEO Stephen Greensaid that This was a singular and whollyirresponsible attack on the banks internationalcompliance procedures. but subsequentinvestigation indicated that it was accurate. U.S.Assistant Attorney General Lanny Breuercharacterised HSBC compliance during this periodas "stunning failures of oversight and worse ...The record of dysfunction that prevailed at HSBCfor many years was astonishing."In March 2009, HSBC announced that it wouldshut down the branch network of its HSBC Financearm in the U.S., leading to nearly 6,000 job lossesand leaving only the credit card business tocontinue operating. Chairman Stephen Greenstated, "HSBC has a reputation for telling it as it is.With the benefit of hindsight, this is an acquisitionwe wish we had not undertaken." According toanalyst Colin Morton, "the takeover was anabsolute disaster".Although it was at the centre of the subprime storm,the wider group has weathered the financial crisisof 20072010 better than other global banks.

    http://en.wikipedia.org/wiki/IL%26FShttp://en.wikipedia.org/wiki/Stephen_Green_%28banker%29http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Stephen_Green_%28banker%29http://en.wikipedia.org/wiki/IL%26FS
  • 7/28/2019 Universal and Investment Banking

    11/24

    According to Bloomberg,"HSBC is one of worldsstrongest banks by some measures". When HMTreasury required all UK banks to increase theircapital in October 2007, the group transferred750 million to London within hours, andannounced that it had just lent 4 billion to otherUK banks. In March 2009, it announced that ithad made US$9.3bn of profit in 2008 andannounced a 12.5bn (US$17.7bn; HK$138bn)rights issue to enable it to buy other banks thatwere struggling to survive. However, uncertaintyover the rights' issue's implications for institutionalinvestors caused volatility in the Hong Kong stockmarket: on 9 March 2009 HSBC's share price fell24.14%, with 12 million shares sold in the last fewseconds of trading.2010 to present

    http://en.wikipedia.org/wiki/Bloomberg_L.P.http://en.wikipedia.org/wiki/HM_Treasuryhttp://en.wikipedia.org/wiki/HM_Treasuryhttp://en.wikipedia.org/wiki/Rights_issuehttp://en.wikipedia.org/wiki/File:Canary_Wharf_HSBC_1.JPGhttp://en.wikipedia.org/wiki/Rights_issuehttp://en.wikipedia.org/wiki/HM_Treasuryhttp://en.wikipedia.org/wiki/HM_Treasuryhttp://en.wikipedia.org/wiki/Bloomberg_L.P.
  • 7/28/2019 Universal and Investment Banking

    12/24

    On 11 May 2011 the new chief executive StuartGulliver announced that HSBC would refocus itsbusiness strategy and that a large-scaleretrenchment of operations, particularly in respectof the retail sector, was planned. HSBC would nolonger seek to be 'the world's local bank', as costsassociated with this were spiralling and US$3.5bnneeded to be saved by 2013, with the aim ofbringing overheads down from 55% of revenues to48%. In 2010, then-chairman Stephen Greenplanned to depart HSBC to accept a governmentappointment in the Trade Ministry. Group ChiefExecutive Michael Geoghegan was expected tobecome the next chairman. However, while manycurrent and former senior employees supported thetradition of promoting the chief executive tochairman, many shareholders instead pushed foran external candidate. HSBC's board of directorshad reportedly been split over the successionplanning, and investors were alarmed that thisrow would damage the company.On 23 September 2010, Geoghegan announced hewould step down as chief executive of HSBC. He wassucceeded as chief executive of HSBC by StuartGulliver, while Green was succeeded asChairmanby Douglas Flint; Flint was serving as HSBC'sfinance director (chief financial officer). August2011: Further to CEO Stuart Gulliver's plan to cut

    http://en.wikipedia.org/wiki/Stuart_Gulliverhttp://en.wikipedia.org/wiki/Stuart_Gulliverhttp://en.wikipedia.org/wiki/Stephen_Green,_Baron_Green_of_Hurstpierpointhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Michael_Geogheganhttp://en.wikipedia.org/wiki/Stuart_Gulliverhttp://en.wikipedia.org/wiki/Stuart_Gulliverhttp://en.wikipedia.org/wiki/Douglas_Flinthttp://en.wikipedia.org/wiki/Douglas_Flinthttp://en.wikipedia.org/wiki/Stuart_Gulliverhttp://en.wikipedia.org/wiki/Stuart_Gulliverhttp://en.wikipedia.org/wiki/Michael_Geogheganhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Stephen_Green,_Baron_Green_of_Hurstpierpointhttp://en.wikipedia.org/wiki/Stuart_Gulliverhttp://en.wikipedia.org/wiki/Stuart_Gulliver
  • 7/28/2019 Universal and Investment Banking

    13/24

    $3.5 billion in costs over the next 2 years, HSBCannounced that it will cut 25,000 jobs and exitfrom 20 countries by 2013 in addition to 5,000 job-cuts announced earlier in the year. The consumerbanking division of HSBC will focus on the UK,Hong Kong, high-growth markets such as Mexico,Singapore, Turkey and Brazil, and smallercountries where it has a leading market share.According to Reuters, Chief Executive StuartGulliver told the media, "There will be further jobcuts. There will be something like 25,000 roleseliminated between now and the end of 2013."In August 2011 "to align our U.S. business with ourglobal network and meet the local andinternational needs of domestic and overseasclients", HSBC agreed to sell 195 branches in NewYork and Connecticut to First Niagara FinancialGroup Inc for around $1 billion and announcedthe closure of 13 branches in Connecticut and NewJersey. The rest of HSBC's U.S. network will only beabout half from a total 470 branches beforedivestments. On 9 August 2011, Capital OneFinancial Corp.agreed to acquire HSBC's U.S.credit card business for $2.6 billion, netting HSBCHoldings an estimated after-tax profit of $2.4billion. In September it was announced that HSBCseeks to sell its general insurance business foraround $1 billion.

    http://en.wikipedia.org/wiki/UKhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Connecticuthttp://en.wikipedia.org/wiki/First_Niagara_Bankhttp://en.wikipedia.org/wiki/First_Niagara_Bankhttp://en.wikipedia.org/wiki/New_Jerseyhttp://en.wikipedia.org/wiki/New_Jerseyhttp://en.wikipedia.org/wiki/Capital_Onehttp://en.wikipedia.org/wiki/Capital_Onehttp://en.wikipedia.org/wiki/Capital_Onehttp://en.wikipedia.org/wiki/Capital_Onehttp://en.wikipedia.org/wiki/Capital_Onehttp://en.wikipedia.org/wiki/Capital_Onehttp://en.wikipedia.org/wiki/New_Jerseyhttp://en.wikipedia.org/wiki/New_Jerseyhttp://en.wikipedia.org/wiki/First_Niagara_Bankhttp://en.wikipedia.org/wiki/First_Niagara_Bankhttp://en.wikipedia.org/wiki/Connecticuthttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/UK
  • 7/28/2019 Universal and Investment Banking

    14/24

    In 2012, HSBC was the subject of hearings of the U.S.Senate permanent subcommittee for investigationsfor severe deficiencies in its anti moneylaundering practices. On 16 July the committeepresented its findings. Among other things itconcludes that HSBC has been transferring $7billion in banknotes from its Mexican to its USsubsidiary, much of it drugs related, wasdisregarding terrorist financing links and wasactively circumventing U.S. safeguards to blocktransactions involving terrorists, drug lords, androgue regimes, including hiding $19.4 billion intransactions with Iran.In July 2012 HSBC came under investigation forallegedly assisting in the money laundering ofterrorist money, after a probe by the US FederalReserve and Office of the Comptroller of theCurrency found that there was "significantpotential for unreported money laundering orterrorist financing". On 11 December 2012, HSBCagreed to pay a record $1.92 billion fine in thismoney laundering case. "Bank officials repeatedlyignored internal warnings that HSBC's monitoringsystems were inadequate, the Justice Departmentsaid. In 2008, for example, the CEO of HSBC Mexicowas told that Mexican law enforcement had arecording of a Mexican drug lord saying thatHSBC Mexico was the place to launder money." The

    http://en.wikipedia.org/w/index.php?title=HSBC_money_laundering_hearings_by_the_US_Senate&action=edit&redlink=1http://en.wikipedia.org/wiki/United_States_Senatehttp://en.wikipedia.org/wiki/United_States_Senatehttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/Money_launderinghttp://en.wikipedia.org/wiki/United_States_Senatehttp://en.wikipedia.org/wiki/United_States_Senatehttp://en.wikipedia.org/w/index.php?title=HSBC_money_laundering_hearings_by_the_US_Senate&action=edit&redlink=1
  • 7/28/2019 Universal and Investment Banking

    15/24

    DOJ, however, decided not to pursue criminalpenalties, a decision which the New York Timeslabelled a "dark day for the rule of law.""We accept responsibility for our past mistakes. Wehave said we are profoundly sorry for them, and wedo so again." HSBC Chief Executive Stuart Gulliversaid.HSBC IN INDIAHSBCS origins in India date back to1853,when the mercantile bank of India wasestablished in Mumbai.The bank has since ,steadily grown in reachand service offerings, keeping pace with theevolving banking and financial needs of itscustomers.HSBC Insurance Brokers (India) PrivateLimited is licensed by the InsuranceRegulatory Development Authority (IRDA) tooperate as a composite insurance brokingcompany, Which will function as a direct andreinsurance broker.

    HSBC As Private BankHSBC Private Bank offers private banking andwealth management services to wealthyindividuals and their families.

    http://en.wikipedia.org/wiki/United_States_Department_of_Justicehttp://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/United_States_Department_of_Justice
  • 7/28/2019 Universal and Investment Banking

    16/24

    With a global network designed to open doorsto international expertise, we have the peopleto link your wealth to a world of financialexpertise.

    Manage your wealth. Develop and protect yourwealth for future. Manage the impacts ofwealth.Commercial bankingThe Hongkong And Shanghai Banking

    Corporation Limited (HSBC).

    Personal banking

    HSBC offers a wide range of retail banking andwealth management services ,includingpersonal lending and deposits products,through its branch network in Ahmadabad,Bangalore, Chennai, Chandigarh,Coimbatore, Gurgaon, Mumbai, New Delhi,Noida, Pune, etc

    Also offered branch-wide are internationalgold and classic credit cards VISA and MasterCard and debit cards from Visa.Customers have access to 24-hour bankingservices through an extensive network ofautomated teller machines (ATM), anintegrated call center, and internet banking online@hsbc.

  • 7/28/2019 Universal and Investment Banking

    17/24

    Non Resident Indian Banking

    HSBCs Non Resident Indian Banking(NRI)centers located in Asia-Pacific, the Middle East,Europe and North America, together withHSBCs offices worldwide, provide theinternational Indian Diaspora access to arange of products and services.

    These include NRI related investment (bothinternational and domestic), transactionaland deposit products, together with a fullrange of personal and private bankingproducts in India and overseas.

    Internet banking also provides easy access toHSBCs services.Sustainability

    For HSBC, being sustainable means managingour business across the world for the long term.That means achieving sustainable profits forour shareholders, building long-lastingrelationships with customers, valuing ourhighly committed employees respectingenvironmental limits and investing incommunities.,

    Financial planning services

  • 7/28/2019 Universal and Investment Banking

    18/24

    Services include investment and custodianmanagement and access to stock broking andinsurance services, which are offered toresident as well as non resident Indian.

    Corporate Banking

    HSBC has well established, long term corporatebanking relationships with large domesticIndian corporations and foreignmultinationals operating in IndiaBusiness Banking

    HSBCs extra mile business Banking offers twotypes of account to small and medium sizedbusiness. The business account and the businessvantage account.Services include business phone banking,business doorstep banking and multi branchbusiness banking.

    Institutional Banking

    Working closely with group offices in Indiaand overseas, trade services, payments andcash management, treasury and capitalmarkets, custody and clearing, andcorrespondent and electronic bankingactivities are offered to banks, financialinstitutions, securities houses, insurance

  • 7/28/2019 Universal and Investment Banking

    19/24

    companies, asset management companies andother non-banking companies, nongovernment and development organizationsoperating in India.

    Treasury And Capital Markets

    Clients consistently rate HSBCs treasurybusiness as one of the best in India.Its dealing room in Mumbai is one of thelargest in the country, serving clients inMumbai and in the major metropolitan centersacross the country.It provides a comprehensive range of productswhich include foreign exchange, moneymarket and fixed income products andderivatives in both rupees and majorcurrencies.

    Custody And Clearing

    The leading custodian in Asia, HSBCs custodyand clearing services are available in 28markets in Asia-pacific and the Middle East.With experienced staff and the latest

    technology, HSBC is the premier provider of sub-custodian and clearing services to foreigninstitutional investors(FIIs) in India.Technology

  • 7/28/2019 Universal and Investment Banking

    20/24

    The HSBC group develops and applies advancedtechnology to the efficient and convenientdelivery of banking and related financialservices. In India, the group provides:

    Self service banking with over 150In- branch and off-branch ATMs and 24-hourphone banking.Trade and corporate banking services with

    real-time access to a centralized informationdatabase instantaneous through onlineconnections between all branches.Asset Management

    HSBC Asset Management (India) privatelimited provides a comprehensive range ofinvestment management solutions to a diverseclient base and is committed for aiming todeliver consistent investment performance,world-class service and a broad range ofsolutions for all types of investors. Our range of offerings in India comes undertwo broad categories Mutual Fund andPortfolio Management Services.

    HSBC Global Resourcing

  • 7/28/2019 Universal and Investment Banking

    21/24

    HSBC global resourcing is the largest, captive,banking and financial services off shoringorganization in the world.A vital part of the HSBC groups global strategy,global resourcing plays a key role in deliveringshareholder value and seamlessly integratesand helps the group remain competitive in theever changing world of banking and finance.Global resourcing is present in India as HSBCelectronic Data processing India pvt. Ltd., and

    operates out of 7 group service centers (GSC) inHyderabad, Bangalore, Kolkata, andVishakhapatnam.Insurance

    HSBC Insurance Brokers (India) pvt. Ltd. Islicensed by the insurance regulatorydevelopment authority (IRDA) to operate as acomposite insurance broking company, whichwill function as a direct and a reinsurancebroker.

    Data processingHSBC operations and processing Enterprise

    (India) pvt. Ltd.., through two centers in

  • 7/28/2019 Universal and Investment Banking

    22/24

    Mumbai and Chennai provides operationalprocessing services for HSBC offers in India.

    Private EquityHSBC private Equity Management (Mauritius)Limited a subsidiary of HSBC Private Equity(Asia) Limited in Hong Kong, has a liaisonoffice in Mumbai.The company specializes in the provision ofequity capital to unlisted growth companies inIndia and Sri Lanka.

    Audit Service

    HSBC professional services (India) privatelimited provides internal audit services to theHSBC groups internal audit units worldwide,with particular emphasis on the IT, Treasury,Asset Management, Private Banking andInsurance functions.

    Investment Banking

    HSBC securities and capital Markets (India)private limited has two main business lines.its institutional and proprietary brokingbusiness is based in Mumbai and, has seats ontwo of Indias premier stock exchanges, theBombay stock exchange and the national stockexchange.

  • 7/28/2019 Universal and Investment Banking

    23/24

    It deals in Indian securities for both Indianand International institutions and for selectretail clients and is backed by an extensiveresearch team.

    Software Development

    HSBC software development (India) privatelimited has established a software center inPune to develop solutions for HSBCs groupoffices worldwide.HSBC Invest direct (India) Limited

    HSBC Invest direct (India) Limited (HIDL)with its headquarters in Mumbai, has a pan-India presence and through its subsidiaries,offers a range of products & based services thatinclude stock broking services, Investmentadvisory, distribution of financial productsand securities related financing (NBFG), toindividuals and corporate.

  • 7/28/2019 Universal and Investment Banking

    24/24

    SUMMARY

    We are the world's local bank.In March 1865 HSBC opened its doors for business inHong Kong and today it welcomes customers acrossthe globe as the world's local bank.The HSBC group has an international pedigree whichis unique.HSBCS origins in India date back to 1853,when the

    mercantile bank of India was established in Mumbai.HSBC Private Bank offers private banking and wealthmanagement services to wealthy individuals and

    their families.Internet banking also provides easy access to HSBCsservices.Today HSBC remains the largest bank in Hong Kong,and recent expansion in Mainland China, where it is

    now the largest international bank, has returned itto that part of its roots.