HSBC lures 'Studs' as joint head of investment bank
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.HSBC yesterday confirmed it has lured John Studzinski, the veteran City banker, from Morgan Stanley to become co-head of its investment bank in a bid to beef up its presence in mergers and acquisitions and corporate finance.
Mr Studzinski will share the role with Stuart Gulliver, who has worked at HSBC for 23 years and was promoted to head its global markets business in October.
The appointment of Mr Studzinski raised eyebrows in the City, because it indicates the world's second-largest bank has belatedly decided to become serious about investment banking. In 2001 it decided to freeze most of its bonuses to investment bankers to reflect the dire state of the markets. It subsequently lost several high-profile bankers to rivals who had been prepared to reward them generously despite the downturn.
Mr Studzinski would not reveal the details of his package, but said: "HSBC understands what market values are."
The 47-year-old American said he would use his appointment to "redefine the business model" of investment banking and added that he would make "targeted additions" to HSBC's team to get star talent on board.
But he played down speculation that he would poach swathes of bankers he used to work with at Morgan Stanley.
Mr Studzinski, who helped build Morgan Stanley into one of Europe's top three securities firms, and Mr Gulliver, 44, will become members of HSBC's executive committee.
Mr Studzinski is understood to have decided to leave Morgan Stanley some months ago. He has known Sir John Bond, chairman of HSBC, for many years, coming across him when the two have been involved on deals and also in charity work.
His appearance at HSBC caused some surprise as people at Morgan Stanley believed when he stepped down a few weeks ago that he was going to spend more time working with the Catholic Church and on his charities.
HSBC does not plan to extend credit to companies in the hope they will use it for investment banking – in the way that Citigroup and JP Morgan have done. But Mr Studzinski made it clear that he and Mr Gulliver would be trying to find ways to leverage more business from their clients. "We understand very well client advice and client relationships could be extended," he said.
Mr Gulliver has been suggested as a possible successor to Sir John Bond, HSBC's chairman, 62. HSBC prefers promoting internal candidates, but Mr Gulliver is unlikely to be the bank's first choice. It usually moves its chief executive into the role of chairman, in contravention of Derek Higgs's review on corporate governance.
The most likely person to succeed Sir John is Stephen Green, an HSBC veteran of 21 years, who previously headed investment banking. Mr Green, 54, was named as chief executive in February to replace Sir Keith Whitson, who is retiring.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments