"HSBC's London bankers should have seen this coming"
As the dust settles on the revelation that HSBC iswinding down its M&A and equity capital markets (ECM) businesses everywhere but Asia and the Middle East, it's becoming apparent that almost no one in the firm had any idea what was about to hit them.
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Even senior bankers were blindsided. In an article today, Bloomberg reports that the rank and file were informed of the changes in an unexpected call yesterday morning. We understand that HSBC's most senior investment bankers were only told of the changes last Friday.
While the pivot to Asia has been a theme at HSBC for years, the pivot to the Middle East was less obviously foreshadowed. But the signs were very clearly there.
«The writing has been on the wall in London for a long time,» says one recently former director in HSBC's investment bank. «They've been moving senior sector managing directors to the Middle East since 2022.»
Those moves include Jon Connor, HSBC's head of advisory & investment banking coverage for the Middle East, North Africa and Turkey (MENAT). Connor spent 15 years working for HSBC in Asia and EMEA before being transferred to co-head capital financing and investment banking coverage for the Middle East in 2022. Other transfers include Joe Assouad, the head of sovereign wealth funds coverage, who moved from London in May '22.
The choice ofGeorges Elhedery as HSBC's CEO also suggested the bank's move Middle Eastwards. Elhedery, who is Lebanese, spent nearly a decade in Dubai after the financial crisis. He moved there from London, first as head of structured rates, then became co-head of global markets in the Middle East of Africa, and was then promoted to MENA CEO.
HSBC insiders say that Elhedery
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