FT.com / Companies / Banks – HSBC chief hits at state bank bail-outs


The state-sponsored bail-outs of western banks risk rewarding management teams for failure, the chief executive of HSBC warned.

Michael Geoghegan’s comments on Monday reflect a deep frustration the recent bail-outs has caused among executives at HSBC, which, despite suffering heavy losses in the US mortgage market, has weathered the credit crisis in better shape than many of its rivals.

He said: “There is no question that guarantees have been given to failed managements.

“I hope these guarantees don’t last too long because they may create the wrong type of behaviour by managements in those banks.”

He added that they risked distorting the market.

However, HSBC executives acknowledged the rescues in the US and Europe were necessary to stabilise the banking system and restore the flow of credit to the economy.

via FT.com / Companies / Banks – HSBC chief hits at state bank bail-outs

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About zyakaira

Investment Banker, 40s, Bangalore This Biopic and this web recreates how one point of view, one person can impact a tremendous economic engine that the world thrives and mis-thrives on. This one has the knowledge and the civil sense , the art of conversation and some good writing to mentor others as powerful and help global managers develop and fine tune their approach on US markets, China, India and the world. Read on here, and let me know what you need. It can be a race for TRPs, a race for new markets and a race to do what is right. I have the pulse of the crisis, the recovery and the market direction and can help you build and refine your strategy as i have helped thousands of managers and multiple global corporations. Of course, it’s more fun if you talk to me. I am in favor of leading this moving of the economic crisis and will partner with you in a soft and subtle way, just the way we both ride to the top. But you can write with us, opine and just reply with aplomb and shine on Twitter , 4 square , Facebook and any other social “choupal” of choice via zyaadakairaada Profile & Portfolio - SocialPicks Different flavours at: http://benchilibowl.wordpress.com http://zyaada.mp

Posted on November 11, 2008, in Bank Stocks, Financial Markets, Global, Meltdown, US and tagged , , , , , , . Bookmark the permalink. Leave a comment.

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