HSBC's self-proclaimed "ruthless" CEO is not its most feared person

HSBC, once known as a gentle place to work with a giant bureaucracy, has been shaking things up. CEO Georges Elhedery has merged the investment and the corporate banks, and cut the M&A and equity capital markets businesses outside North America, Asia and the Middle East. 

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Speaking last week, Elhedery said he's prepared to be ruthless as he makes "difficult decisions" and pushes for HSBC to become a top five player in its chosen fields. "We have to be ruthless. We need to be the best at what we do,” he proclaimed.

Inside HSBC, though, Elhedery is not seen as the most ruthless person. That accolade might once have gone to Mark Tucker, the departing chairman. Now, insiders in the investment bank say it goes to the combination of Michael Roberts and Gerry Keefe. 

Roberts is head of HSBC's corporate and institutional banking offering in the UK, Europe and the Americas. Keefe is his head of banking for Europe and the Americas. The two men joined HSBC from Citi, with Roberts arriving in 2019 and Keefe following him two years later.

Some Citi insiders say Roberts and Keefe are among HSBC's most feared people. Others say they are simply respected. Either way, the two are seen as having been instrumental in the dismemberment of HSBC's investment bank and appear to have sacrificed their internal popularity as a result. When Roberts made an internal presentation in June and declared that HSBC had become the envy of Wall Street, he was mocked by emoji. 

Keefe in particular seems to fill some HSBC employees with trepidation. Writing earlier this year, one insider described him as Roberts' "execution henchman." An HSBC MD says Keefe forces through change and that people are wary of standing in his way. "Gerry does not take no for an answer," says another exiting employee. 

Given that HSBC appears to contain many highly paid people doing very little work, Keefe may be just what's needed. Elhedery, who's worked in HSBC's markets division since 2005, could possibly learn from his example. "Georges is a nice guy," claims one insider. "Roberts and Keefe can be far more abrasive." 

HSBC declined to comment.

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