(Bloomberg) – HSBC Holdings plc’s U.S. business is returning to zero as it sees it as a key investment banking unit after it emerges from mergers and acquisitions and equity capital markets.
“We can provide financing for clients, which will be debt capital markets and leveraged financing, as well as global transaction banking,” said Lisa McGeough, CEO of HSBC US, in an interview Tuesday. “These are really jewelry for royal-type businesses, which is amazing.”
George Elehedery, CEO of HSBC Holdings, is finalizing the Global Investment Banking Review as part of the company’s largest restructuring in at least a decade. Throughout New York, London and continental Europe, staff were cut as banks focus on more profitable major businesses.
“It simplifies, agile, and has a more customer-oriented approach,” McGeough said of the bank’s bigger strategy.
Speaking in her first television interview since taking the helm in the U.S. department in early January, McGeough said she was committed to investment banking as HSBC hopes to redirect the company to more competitive regions.
According to data compiled by Bloomberg, HSBC has raised two positions to the 10th place in U.S. investment-grade bond underwriting. Data shows that for our leveraged loans, banks have raised four positions to 17th.
“We have a balance sheet and we have the ability to support customers in a variety of loan products, which is highly relevant to the capital market,” McGeough said. “These are our power allies that can help us on the international side.”
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