Household HSBC Watch

It seems like the Irish are not the only HSBC employees losing jobs. HSBC’s Livingston call center is closing. The bank said that although the staff would hopefully be absorbed within the company’s Scottish workforce it is no longer cost effective to keep the West Lothian location open. HSBC admitted that some jobs may go to India. A previous report said HFC Bank Ireland was closing immediately. These changes make one ask what is really happening at HSBC. Did the bank carry a lot of dead weight until the U.S. subprime and Household International disasters caused huge losses? Or is this a subtle way to justify huge pay increases awarded to senior executives?

It seems lately that all the positive articles about HSBC are coming from Asia and the Middle East. Times Online also reported on companies seeking to evade taxes by moving. The Independent reported on an unhappy customer. Both of these news articles were in the international Google news for everyone to see. It becomes a matter of perception.

Chris Spooner, HSBC’s head of financial planning and tax, went public with the warning, saying HSBC had moved jurisdictions before and could again. His warning was in response to a British proposal to tax corporations on overseas earnings. HSBC had expected chancellor Alistair Darling to abandon a proposed tax on profits earned by British companies overseas, saying it was simply too damaging. Dozens of other FTSE bosses had thought likewise.

Sorry guys but the new tax did pass, and will soon be the law.

Elsewhere, following the HSBC Heart of Borneo Cycling Expedition from Kuala Belait to Muara last Sunday, HSBC in its dedication to create environmental awareness sponsored 700 reusable bags for the Department of Recreation, Park and Environment (JASTR) at its branch in Belait yesterday morning.

Who cares? Who really cares? People are losing their jobs and their homes. In the U.S. HSBC cannot even get their core banking computers operating correctly. People cannot find their direct deposits. In the U.K. HSBC had angry merchants and customers when their payment processing computers crashed.

Maybe HSBC gave away the 700 shopping bags because HSBC senior management was wearing them over their heads. Hear no evil, see no evil.