HSBC announces job losses in FX
HSBC announced job cuts at its FX division last week, which saw Dean Heiden, a director in FX institutional sales in London, and Ted Mermel, FX and derivatives sales in New York, both leave the bank, according to two people familiar with the situation.
In addition, Lily Fay, who was part of the mid-cap corporate sales team in New York, also left the bank. According to one of the sources, four people in HSBC’s New York division left the firm last week. HSBC declined to comment. The Wall Street Journal on Monday reported that as many as 10 people had been laid off last week. Last week the bank said it was sticking to its plan to cut costs by $2.5 billion to $3.5 billion by the end of 2013, including eliminating 30,000 jobs globally, while reducing its activity in slower growing markets, including Poland. The bank said its US mortgage business, the former Household International, was weighing on its earnings.
The bank, in announcing its third-quarter earnings last week, said investment banking revenue declined 19%, to $3.5 billion because of its credit and rates business in Europe. However, it made a positive reference to its FX division’s performance, saying that it had recorded a significant rise in revenues, particularly in Asia and the Americas.
Foreign-exchange revenues at HSBC rose to $925 million in the three months to the end of September, up from $578 million in the same quarter of last year.