Finance Watch
23 January 2017 - 9:12AM
Dow Jones News
HSBC
Investment Bankers
To Face Job Cuts
HSBC Holdings PLC is cutting around 100 senior investment
bankers, adding to staff reductions last year from a restructuring
in its global banking business.
HSBC said the bank reviews performance in its Global Banking and
Markets business annually and makes "appropriate changes to
strengthen and grow the business."
In June, several top bankers departed as part of a
reorganization of the global banking division under new co-head
Matthew Westerman.
HSBC has been cutting tens of thousands of jobs across its
operations as part of a broader effort to improve returns. The bank
is scheduled to disclose its results for the fourth quarter on Feb.
21.
--Margot Patrick
Guotai Junan
IPO Could Raise
$2 Billion or More
Guotai Junan Securities Co., China's third-largest brokerage
firm by assets, has filed for a Hong Kong initial public offering
that people familiar with the situation say could raise $2 billion
or more by midyear.
The Shanghai-based firm filed for its IPO with the Hong Kong
stock exchange on Friday. A spokeswoman for Guotai Junan didn't
respond to a request to comment.
Chinese brokerages have been tapping the offshore market to fund
expansion plans. Citigroup Inc.'s China securities joint-venture
partner, Orient Securities Co., China Merchants Securities Co. and
Everbright Securities Co., all launched multibillion-dollar
offerings in Hong Kong last year. All three companies are trading
marginally below their listing prices.
Guotai Junan, which listed in Shanghai in 2015, plans to use
proceeds from the IPO to develop its prime brokerage,
personal-financial services and investment-management businesses,
as well as for overseas expansion and the growth of other divisions
within the firm, according to the filing.
--Alec Macfarlane and Ese Erheriene
SOCIÉTÉ GÉNÉRALE
Lender to Settle Mortgage Claims
Société Générale SA has agreed to pay a $50 million civil fine
to settle federal claims that it defrauded investors, including
financial institutions, in the marketing and sale of a residential
mortgage-backed security, the Brooklyn U.S. Attorney's office said
Friday.
As part of the settlement, the French bank admitted that it
didn't tell investors that loans underlying the security were
underwritten outside of the loan originators' underwriting
guidelines. The bank also falsely told investors that none of the
values of mortgages on properties within the security exceeded the
value of these properties, according to the agreement.
"Société Générale is pleased to have resolved this legacy matter
involving a business that the firm exited in 2008," said James
Gavlion, a spokesman for the firm.
--Erica Orden
(END) Dow Jones Newswires
January 22, 2017 16:57 ET (21:57 GMT)
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