HSBC’s ‘toxic culture’

THE investment bank at HSBC is appalling and run by incompetent managers, its staff claim.

A damning memo sent to the board claims it has the worstperforming investment unit in the industry and a toxic culture means attempts by staff to explain problems are ignored.

Titled ‘Global banking and markets: rewards for persistent failure’, the memo says: ‘We are entirely fed up and demoralised and have no confidence at all in the existing leadership. Unlike any other bank, there is no proper and effective route to provide upward feedback. Hence this memo, which is whistleblowing on incompetence.’ It adds: ‘Performance really is appalling.’

Senior executives described the memo as ‘trash’, according to the Financial Times.

HSBC has tried to take on the likes of Goldman Sachs in investment banking. But it has always struggled to compete, despite a £2trillion balance sheet and dominance in the Hong Kong market. A spokesman said: ‘We are proud of our global banking business.’