HSBC's shock closure of M&A and ECM outside Asia: "It's crazy"

efinancialcareers.com:

First, HSBC asked its senior bankers to reapply for their own jobs last November. Then HSBC said it was considering «thoughtful» job cuts. Then HSBC said it was cutting 40% of staff at senior levels. Then, it trimmed unexpected salespeople and traders. Now, it seems that it's closing swathes of its investment bank in the UK, Europe and the US and focusing on Asia and the Middle East. 

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Bloomberg reported today that the bank sent a memo to staff this morning stating that: “We will retain more focused M&A and equity capital markets capabilities in Asia and the Middle East, and we will look to wind-down those activities in Europe, the UK and the Americas.” A spokesperson for the bank added that the changes are part of a «review» of the investment banking business and that the businesses are being wound down, "subject to local legal requirements.”

Speaking off the record, sources at the bank said the memo came as a complete surprise. «We've had a good year,» said one banker in London, «This is crazy.» Another observed that a «massive downsizing» seems to be coming to HSBC's sector teams. «Even senior managing directors only found out about this a few days ago,»  says one London-based VP. " — I only found out this morning." Junior bankers at HSBC say they too were blindsided.

Insiders say HSBC held a town hall early today to discuss the memo. One insider at the bank said the businesses aren't being wound down immediately, and that everyone is still working on their mandates and serving their clients. «It's all the same as before. This isn't an immediate thing.»

In worst case scenarios, business closures are followed by the disabling of key fobs and people are unable to get