HSBC ousts CEO Flint to speed up strategy, shares plummeted 3%

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HSBC ousts CEO Flint to speed up strategy, shares plummeted 3%

On Monday, the 5th of August 2019, HSBC Holdings PLC., The British multinational financial services company headquartered in London, sacked its Chief Executive John Flint after 18 months in service what was contemplated as a shock move among the investors, which eventually dragged the world’s seventh-largest lender’s share prices down by 3 percent to wrap up the day at £626.26 per share, remarking its biggest intra-day fall since February this year.

Nonetheless, followed by the reveal of the announcement on Monday (August 5th), Europe’s largest lender by net revenue, HSBC Holding PLC., had been quoted saying that the lender was required to speed up progresses on critical areas likes of a maverick turnaround of its US businesses ahead of a likely no-deal Brexit and a rubberstamping of UK-US free trade pact as early as next October.

More importantly, an HSBC spokesman familiar with the matter said in terms of anonymity that the ousting of CEO Flint had been a result of potential conflict of interests with HSBC Chairman Mark Tucker, who used to criticize Flint’s tentative approach from time-to-time towards expense cuts and setting out higher revenue targets for senior managers to amp up profits despite a disorderly Brexit breathing fires on Britain’s financial skeleton.

Nonetheless, HSBC, which generates more than 80 percent of its revenue from Asia, said that Noel Quinn, the multinational lender’s global commercial banking unit head, would act as an interim Chief Executive after Flint’s dismissal.