HSBC slams govt's £37bn bailout of rival banks
HSBC chief slams government's £37bn rescue of the UK's banks as 'wrong type' of investment
The prospect of rival banks being rewarded by the government’s £37bn bailout
package for taking risks to boost share prices is understood to rankle within
the Canary Wharf headquarters of HSBC, the
world’s fourth biggest bank.
Michael Geoghegan, HSBC chief executive, has warned the state-sponsored
bailouts of rival banks could encourage a return of reckless behaviour in the
city and other financial centres.
He said the conservative policies followed by his bank in recent years,
criticised by some shareholders, had proved a solid base to weather the
financial storm but the banks, which had taken risks and been punished by the
markets, had been rewarded by the government’s £37bn rescue package, the
‘I hope these guarantees are not in place for too long. They may create the
wrong type of behaviour by managements in those banks,’ Geoghegan said.