A large Califronia pension fund has put more pressure on HSBC, setting a deadline for change. Christy Wood, Calpers’ head of global equities, told The Sunday Times it wants HSBC to reveal detailed plans to refocus the group, address share-price underperformance and set a series of testing financial targets. “We want to see this unfold in the next few months. If they do not set it out before July 1 then there is a problem,” said Wood.
An article by Grant Ringshaw which appeared in the Sunday Times says Wood is one of the world’s most powerful fund managers, responsible for about $150 billion of Calpers’ $256 billion investment portfolios. HSBC has been under pressure due to huge losses at HSBC Finance, which is the new name for predatory lender Household International. Other problems cited include a general lack of focus by HSBC, as well as executive compensation.
Eric Knight of Knight-Vinke has also accused HSBC of making a series of strategic mistakes by buying banks in developed countries, owning a large number of sub-scale retail-banking businesses and squandering the chance to be the dominant western bank in China. Knight has also called for assets in France and America to be sold and for the merger or sale of the investment-banking business.
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