HSBC's London equity researchers received an ominous request to work from home
HSBC's London equity researchers have received the sort of request equity researchers at JPMorgan can only dream of: they're being asked to work from home for two days next week. But there's a catch.
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HSBC declined to comment, but multiple equity researchers at the bank in London say they've received an email stating that selected members of the developed Europe team will receive calls informing them their jobs are at risk. These calls are coming Thursday or Friday next week. They're being asked to work from home on these days and to be available to take a call even if they're on holiday.
"A couple of weeks ago they said they would have an update for us in the third week of May," says one member of the team. "The timing isn’t entirely surprising, but it’s a lot more tangible now."
The missive comes after HSBC announced its intention of withdrawing from US, UK and European M&A and equity capital markets business lines in January. "This is the natural progression," says one research insider. "We were safe from the first round of cuts but if you're chopping ECM teams in Western markets, there will always be a question of whether you need equity research. Part of our raison d'être is supporting the deal process."
CEEMEA research teams in London are thought to be safe. The current expectation isn't that the entire developed European equity research team will receive a call at home, but that select members of particularly large teams will be targeted.
The email to equity researchers at the bank comes as HSBC announced today that it's forming a new 'capital markets and advisory business' to be run by Adam Bagshaw, the former head of the investment bank who joined four years ago. The new business will have three pillars: "Financing solutions" or debt capital markets (DCM), which will be global; "Corporate finance" or sector bankers focused on Asia and the Middle East; and "Strategic Advisory" or M&A and ECM, focused on Asia and the Middle East.
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