HSBC hints at shifting headquarters from UK due to regulatory tightening
07 Mar 2011
In what is being seen as a veiled threat, HSBC said it would consider quitting the UK if the rising backlash against the banking industry led to a further tightening of the regulatory clampdown and higher taxes.
Britain's biggest bank has said it could move its headquarters overseas unless the authorities 'protected' London's standing as a financial centre.
According to analysts, in the event of HSBC actually carrying out its threat, it would deal a severe blow to the government's plan to reduce Britain's deficit.
HSBC could move its headquarters from London's Canary Wharf to Hong Kong, they add.
Although chancellor George Osborne is keen on reducing Britain's dependence on the financial industry, he would not like to afford to lose the huge amounts by way of taxes HSBC generates for the exchequer.
The banking giant, which was based in Hong Kong, moved to the UK after buying the Midland Bank in 1992. It paid £1.2 billion in taxes last year.
