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Investing.com -- HSBC has recently begun reducing its services for small and medium-sized businesses in the U.S., according to The Wall Street Journal, citing a company representative. This move is part of a larger strategy to concentrate on markets where the bank has a competitive advantage.
Earlier this week, HSBC terminated 40 employees from its business banking division. The bank has also communicated its decision to the division’s approximately 4,400 clients, companies that generate up to $50 million in revenue.
The bank’s representative stated, "We are supporting…clients while they transition to a suitable alternative provider." It was also mentioned that HSBC will continue to serve some clients, but they will be managed by different teams.
The majority of the clients that HSBC is releasing are domestic businesses, as opposed to U.S. subsidiaries of international corporations. This move follows HSBC Chief Executive Georges Elhedery’s recent decision to scale back the bank’s investment banking offerings.
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