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.