Bankers have varying explanations why the HSBC group closed its New York foreign exchange trading operation for G7 currencies last September. Some blame management conflicts; others suggest losses on proprietary trades. Rob Loewy, HSBC Midland's head of foreign exchange, says that over 80% of trading took place when both the London and New York offices were open, and that it made more sense to house all the traders under one roof where risk mandates and liquidity were more favourable.
In the end most bankers' comments boil down to this: that it was an admission that the bank couldn't make money
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