Quote:
Originally Posted by Damien
Pretty bad news. Doesn't bode well for the future of their HQ in London.
|
I think it's almost a certain that their HQ will move back to Hong Kong.
Quote:
Originally Posted by Damien
The likes of HSBC will be ok. The day-to-day retail banking that peer-to-peer will 'disrupt' is relatively small fry for them. Most of HSBC's business comes from Asia and Investment banking. The reason they may leave is probably not because the average family is deciding to go elsewhere to deposit their few thousands pounds but because we're taxing them on their entire profit with the banking levy.
As I said most of their business is in Asia but the Levy is applied to the entire profit generated by the bank so they're making the money over there and getting taxed here. It doesn't make sense for them to let that continue. The UK operation isn't irrelevant but it's not critical either.
Osborne may change the rules so it only applies on UK profit in a speech tomorrow which might help them stay. He probably should do it as the UK really shouldn't be losing one of the biggest banks in the world to Hong Kong. A smaller tax income is better than none at all after all.
|
I used to think that too, but to be honest HSBC turned Midland into what used to be a decent high street bank into a global criminal cartel. I say let them go, because who knows what other scandal is lurking around the corner with them.