HSBC Holdings Plc, Europe's largest bank by market value, said it remains committed to its US$1 billion online brokerage venture with Merrill Lynch & Co.
"We're not going to walk away from the business," David Eldon, chairman of HSBC's Hong Kong & Shanghai Banking Corp, said.
"Clearly, from the day we put that business together, the markets have changed dramatically. The potential for growth is not how we projected when we started." HSBC's commitment to the venture comes at a time when the bank is seeking further ways to reduce costs as world economies slide.
Hong Kong's economy probably didn't grow last year after expanding 10.5 percent in 2000. Taiwan's economy probably contracted 2.38 percent in 2001, the central bank said last month.
In December, Merrill Lynch said that it may reduce its involvement in the venture with HSBC as the biggest brokerage cut jobs and costs amid an economic slowdown.
Merrill Lynch HSBC offers high-interest accounts, share dealing and other services to inves-tors with more than US$100,000 to spend in the United Kingdom, Canada and Australia.
This month, Merrill said it will take a fourth-quarter US$1.7 billion charge, its largest ever, as Stanley O'Neal, named company president in July, fires staff and leads a retreat from an expansion that left the bank less profitable than rivals.
Eldon, in Taiwan to open HSBC's eighth branch on the island, said at a news conference the bank may fire more staff as it seeks to cut costs. Last year HSBC eliminated 370 jobs around the world.
"If you look around the world today, everyone is laying people off and we're not going to be immune from it," Eldon said.
"But don't expect any large-scale redundancies." He said the bank isn't in any discussions aimed at acquiring a Taiwan lender.
Taiwan's government is encouraging its banks to combine in an effort to shore up a financial system burdened by bad loans. HSBC has been on the lookout for acquisitions after obtaining shareholder approval in May to sell as many as 1.9 billion shares to finance purchases. It made 18 acquisitions last year.
"We continue to strengthen our business here [in Taiwan] through organic growth," Eldon said. "There is nothing we are in talks about" acquiring.
‘UPHOLDING PEACE’: Taiwan’s foreign minister thanked the US Congress for using a ‘creative and effective way’ to deter Chinese military aggression toward the nation The US House of Representatives on Monday passed the Taiwan Conflict Deterrence Act, aimed at deterring Chinese aggression toward Taiwan by threatening to publish information about Chinese Communist Party (CCP) officials’ “illicit” financial assets if Beijing were to attack. The act would also “restrict financial services for certain immediate family of such officials,” the text of the legislation says. The bill was introduced in January last year by US representatives French Hill and Brad Sherman. After remarks from several members, it passed unanimously. “If China chooses to attack the free people of Taiwan, [the bill] requires the Treasury secretary to publish the illicit
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
A senior US military official yesterday warned his Chinese counterpart against Beijing’s “dangerous” moves in the South China Sea during the first talks of their kind between the commanders. Washington and Beijing remain at odds on issues from trade to the status of Taiwan and China’s increasingly assertive approach in disputed maritime regions, but they have sought to re-establish regular military-to-military talks in a bid to prevent flashpoint disputes from spinning out of control. Samuel Paparo, commander of the US Indo-Pacific Command, and Wu Yanan (吳亞男), head of the People’s Liberation Army (PLA) Southern Theater Command, talked via videoconference. Paparo “underscored the importance
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
RSS