HSBC says no need to buy to boost investment bank
Global banking group HSBC Holdings Plc does not believe it needs to make an acquisition to succeed in strengthening its investment banking business, the company's CEO said on Wednesday.
HSBC Chief Executive Stephen Green said the group realized it needed to bolster some areas of its investment banking operations, such as advisory services, but that it did not need to acquire another bank to do so.
The London-based group, the world's third-largest bank by market value, has been trying to revamp its investment banking business for more than a year.
"There's a lot we can do. Our whole thrust is on building on the strengths that we've already got," Green told reporters after speaking to members of the Brazilian British Chamber of Commerce and Industry in Sao Paulo.
"We have needed to make some hiring decisions. We certainly did not need to make an investment banking acquisition to put ourselves into a highly competitive position with our clients."
Last week, shares and warrants for New York investment bank Bear Stearns Cos. Inc. surged, partly on talk that HSBC was a bidder for the company.
HSBC also has said it wants to expand in the United States but Green did not directly comment on Bear Stearns.
However, asked if HSBC was ruling out a potential purchase in the investment banking industry, Green replied: "Our strategy is focused on organic development of the business in the way I've described."
HSBC hired ex-Morgan Stanley dealmaker John Studzinski early last year to revamp the equities and advisory businesses and has said it wants to expand its New York-based merger and acquisition capabilities.
(From Reuters, October 06, 2004)
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