- Lake leaves after 10 years after being sidelined in reshuffle
- Investment bank under pressure to cut costs, improve returns
HSBC Holdings Plc’s vice-chairman of global banking and markets Spencer Lake is leaving the firm after being sidelined in a reorganization of the investment bank earlier this year.
Lake leaves the bank after 10 years including stints as co-head of global markets and head of capital financing at Europe’s largest bank, according to a memo to staff seen by Bloomberg News. He was moved to a vice-chairman position overseeing China and RMB internationalization, infrastructure, and sustainable financing after Matthew Westerman joined from Goldman Sachs Group Inc. and HSBC’s capital financing operations merged with the banking business in February.
Global Banking & Markets Chief Executive Officer Samir Assaf has restructured the securities unit to improve returns amid a drive to reduce annual costs across the bank by $5 billion and eliminate 25,000 jobs. HSBC is contending with falling revenues as growth slows in China and the U.K. deals with the impact of the vote to leave the European Union. The bank is also in the midst of a program to redeploy as much as $150 billion of assets to Asia and faces misconduct investigations in the U.S.
Lake joins other senior bankers who’ve left this year as HSBC cuts duplicate roles from the combination of the corporate and investment bank units, a person with knowledge of the matter has said. He’s credited with building up the firm’s bond and loan businesses since joining HSBC in 2006, according to the memo.