http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/11/25/cnhsbc125.xml

HSBC is understood to be considering a sale of its French retail business as part of the bank's new plans to derive 60 per cent of its earnings from emerging markets.
 
Stephen Green, the chairman, subtly raised his targets for emerging markets growth in a strategy update delivered to investors on Friday. The move comes amid pressure from Knight Vinke, the activist investor that has accused HSBC of a lack of focus and criticised its pay structure.

It is understood that Green has warned that any business delivering returns on capital below the group average of 16 per cent would be placed under review. Although no decisions have yet been taken, it is thought that several HSBC businesses in developed countries could be put up for sale.

The personal financial services and small business banking operations in France, estimated to be worth about £2bn, are thought to be on the block. Analysts believe that HSBC's businesses in Malta, Canada, Australia and Bermuda and its regional banking operations in the US could also be put up for sale.

It is understood that the review of underperforming businesses was launched early this year, before Knight Vinke launched its high-­profile campaign. Supportive investors of HSBC believe that the bank is already taking most of the steps that Knight Vinke has suggested.

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Some are concerned that Knight Vinke may be able to claim credit for decisions that the bank was planning to make anyway. HSBC's French business has already been targeted by Knight Vinke as an underperformer because of its high cost to income ratio and low market share.

Other proposals suggested by the investor have included transferring the bank's headquarters to Shanghai in an attempt to get past China's foreign ownership rules and acquire a domestic Chinese bank. It is understood that HSBC has examined such options and dismissed them as unworkable.

Would you trust anyone that has the work Shanghai in their name??

shanghai 
 
 Term describing a type of kidnapping.Back in the 17th and 18th century in back alleys behind orphanages and bars there were trap doors that were watched and opened on drunken people or wandering children,then the children or drunks were beaten up until unconscious and brought aboard a ship to do slave labor out at sea until they died.

 

HSBC didn't want the domestic side of Bank of Bermuda anyway, they just wanted their investment portfolio. I wouldn't be surprised at all if they tried to dump it.