Morning Coffee: Introverted bank CEO evades ruthless boss who haunted predecessors. Goldman Sachs' complicated client relationship
If you've always wanted to be chairman of HSBC, then good news: that seat is becoming vacant. Sky News reports that Mark Tucker, chairman of HSBC, is leaving, and that MWM Consulting, a search firm, will probably be looking for his replacement.
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Georges Elhedery, HSBC's comparatively new CEO, might have reason to cheer these developments. His colleagues told the Financial Times that Elhedery is "pretty introverted" with a "high IQ". Tucker's colleagues told the Financial Times that he's a highly competitive, ruthless and dominant workaholic with a "short fuse."
During his tenure as chairman, Tucker has worn through various of Elhedery's predecessors as CEO. First, was John Flint, an HSBC insider whom Tucker himself promoted shortly after becoming chairman, and then dumped 18 months later after the two men allegedly clashed over the pace of change. Then came Noel Quinn, who lasted five years in the CEO role but who had Tucker peering over his shoulder throughout, until - eventually - internal rumours were that either the clubbable Quinn or the dominant Tucker were going to have to leave. It was Quinn who announced his resignation in May 2024.
Elhedery became CEO in July. If Tucker's leaving, George will be spared the "Tucker time" middle of the night emails. He'll be spared the "charging bull" quest to get things done. As he reorganizes the bank, he may, however, George may also miss Tucker's vast knowledge of Asia and undisputed intelligence.
Whoever replaces Tucker should probably prepare for a harsh interview process, possibly with the man himself. When the ill-fated Flint was made CEO in 2017, he seemingly started out on the wrong foot after finding the selection process humiliating.
Separately, as London M&A deals heat up pre-Christmas, Goldman Sachs is in an interesting position. Bloomberg notes that Goldman bankers Anthony Gutman, Nimesh Khiroya and Bertie Whitehead are advising Aviva on its acquisition of Direct Line, but that Mark Sorrell and some other Goldman bankers were advising Direct Line itself in March, when Belgian firm Ageas mounted its own takeover. Goldman was also the joint lead manager on Direct Line's 2012 IPO.
Goldman's relationship with Direct Line ended by mutual agreement this summer. As a result, Direct Line now finds itself in the position of attempting to rebuff an "opportunistic" bid being brought by a rival, advised by a bank that knows all its secrets. "GS should know exactly where the killing zone is (or at least was) in March," says merger arbitrage specialist MKP Advisors.
Meanwhile...
Deutsche Bank has put Daniel Ross, its co-head of London investment banking, at risk. (Global Capital)
Murray Roos, the former co-head of equities at Citi, has got a 200 acre East Sussex farm and is trying to automate livestock auctions. (Bloomberg)
Louis L’Heureux, co-head of Banco Santander SA’s leveraged finance team in Europe, has inexplicably left. (Bloomberg)
Donald Trump has a "man crush" on Jamie Dimon and has been speaking to him for months. (New York Post)
BofA was the largest bank in North America flow credit trading by revenue in the first three quarters of the year, according to data provider Vali Analytics. (IFR)
Assets under management in Abu Dhabi increased 215% year-on-year to the end of the third quarter. (Financial News)
UK M&A has hit $306.3bn so far this year, a 57 per cent increase on the same period last year, according to data from Dealogic. (Financial Times)
116,727 people sat all three levels of the CFA exam in the first eight months of the year, down 2,735 on the same period in 2023. Last year there were 163,000 exam registrations, 40 per cent down from the peak of 270,456 in 2019. China is to blame for the fall. (Financial Times)
McKinsey & Co. has got a $48bn hedge fund called McKinsey Investment Office (MIO Partners), which started out as a pension plan for the firm’s partners. (Sunday Times)
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