UK Bank Standards, Bonuses and Scandals: HSBC Chiefs Give Evidence to MPs Live

Andrew Tyrie MP closes the session.

Thank you for joining IBTimes UK

http://live.ibtimes.co.uk/Event/UK_Bank_Standards_Bonuses_and_Scandals_HSBC_Chiefs_Give_Evidence_to_MPs

Tyrie MP asks Flint is “people who earn your kind of salary have a sense of duty of giving back to society”

Flint and Gulliver said “yes, I can see why people would ask that.”

Flint:

We need to find a way to identify problems, such as the mis-selling of interest rate swaps, to stop these problems rather than paying compensation or tackling years later

Flint on risk management:

I do think the weaknesses in the banking crisis was the over reliance on models, whether in algo trading, the risk models, the ratings agencies. If the mathematics were weak, then the models used would be damaging.

Flint:

I do think there is an aspect of professionalism in some industries where you are taught ethics as part of your job, such as law and medics. Banks use to have this, but not anymore

MPs suggesting that HSBC can only motivate staff by “cash”, deferred or otherwise and compare them to doctors and teachers.

Flint:

The vast majority of our staff are on average or below average earnings.

Gulliver defends pay for staff:

We have always been at the lowest end of payout ratios. Our code staff get paid about 50% of what RBS or Barclays gets paid. We pay the minimum we can get and retain talent. Shareholders voted 86% in favour of this structure. We do not inflate pay.

“Pat McFadden MP asks about pay structure at HSBC and how it is “weird”. He adds, “I am not convinced your pay structure promotes a good culture””

UK Bank Standards, Bonuses and Scandals: HSBC Chiefs Give Evidence to MPs Live

MPs asking about the “ethics” behind algo trading .... Are banks becoming IT companies rather than banking experts?

http://live.ibtimes.co.uk/Event/UK_Bank_Standards_Bonuses_and_Scandals_HSBC_Chiefs_Give_Evidence_to_MPs