Paris Woos HSBC Over Office Move

BethPH
By BethPH Last edited 90 months ago
Paris Woos HSBC Over Office Move

No sooner has Boris Johnson tried to fend off an attempt to pinch Barclays by the Americans, the French are at it as well with rumours that they’re working on enticing HSBC to Paris.

The Canary Wharf-based investment bank threatened last year to leave the capital for Hong Kong if government plans to break up big banks went ahead, though they later issued a statement saying they were staying put. The latest speculation around Paris has brought forth a fresh round of denial from the bank, who have said that they have been ‘very clear that it prefers to stay in London, and that any talk of an imminent change in its position on the matter is entirely speculative and presumptuous.’

It’s not exactly unusual for large companies to review their domicile arrangements – the Paris talks are apparently part of 3 year review process for the bank – but fears that London would lose its status as the centre of the financial industry as a result of increased regulation are perhaps overstated. After all, moving an operation in its entirety from one country to another with the attendant costs and loss of staff isn’t something that any company would take a decision on lightly.

HSBC refused a government bailout during the financial crisis saying that they could not envisage a time when they would need it, also suggesting that it set a bad precedent.

Photo by dantecandal

Last Updated 04 April 2011