HSBC plans to slash headcount and faces three new US lawsuits
HSBC is set to announce plans to cut thousands of jobs across its global workforce next week.
Stuart Gulliver, HSBC’s chief executive, will set out a revised target for headcount reductions that will be implemented by the end of 2017 at a investor day next week, according to Sky News.
HSBC declined to comment.
The precise job cuts number that will be outlined by Gulliver was unclear, although insiders said that it was likely to be between 10,000 and 20,000.
Meanwhile the under-fire bank has been ordered to face several lawsuits in the US. It was yesterday ordered to face three cases accusing it of breaching its duties as a trustee overseeing residential mortgage-backed securities that suffered more than $34bn (£22bn) of losses in the global financial crisis.
US district judge Shira Scheindlin in Manhattan said the plaintiff investors, including funds from BlackRock, Allianz SE’s Pacific Investment Management and TIAA-CREF, could pursue claims accusing HSBC of breach of contract, and concealing known defects in mortgage loans backing 283 trusts.
The judge also said the plaintiffs could pursue a conflict of interest claim accusing HSBC of refusing to “rat out” misconduct by loan servicers, hoping that they would “return the favour when the roles were reversed”.