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HSBC executives have suggested for months that big changes were coming to its U.S. unit, but the overhaul was less drastic than some had called for. The parent company's CEO defended the decision as necessary to preserve key funding sources and client relationships.
June 9 -
HSBC Holdings executives said little about the future of their U.S. bank and other underperforming businesses at a sometimes contentious annual shareholder meeting Friday.
April 24 -
A disappointing 2014 for HSBC has CEO Stuart Gulliver considering "extreme" changes at its U.S. bank and other struggling units, which he said are a drag on return on equity.
February 23
HSBC has named a JPMorgan Chase executive the head of its retail banking and wealth management divisions in the U.S., as the British company overhauls its global business.
The $195 billion-asset HSBC Bank USA hired Pablo Sanchez, effective June 1, from JPMorgan, where he was national director of consumer banking. In addition to retail and wealth management, Sanchez will lead HSBC's U.S. mortgage and insurance businesses. He'll also have strategic oversight responsibility for retail banking and wealth management in Canada, in order to ensure HSBC's North American business is aligned, an HSBC spokesman said.
Sanchez replaced Kevin Newman, who will retire after 25 years with HSBC.
The appointment of Sanchez comes a few weeks after HSBC said it plans to keep its U.S. business mostly intact, after some had speculated it could be severely downsized. Instead, HSBC Holdings Chief Executive Stuart Gulliver said the U.S. is "absolutely critical" and serves as a "flywheel" for HSBC's global activities. The U.S. business is seen as pivotal to reaching customers that do business around the world, he said.
HSBC will also retain the majority of its network of about 230 U.S. retail branches, mostly on the East Coast, and its wealth-management business, both of which Sanchez will lead. Some analysts had called for HSBC to sell or shrink both retail and wealth management.
