Finance Watch

HSBC

Investment Bankers

To Face Job Cuts

HSBC Holdings PLC is cutting around 100 senior investment bankers, adding to staff reductions last year from a restructuring in its global banking business.

HSBC said the bank reviews performance in its Global Banking and Markets business annually and makes "appropriate changes to strengthen and grow the business."

In June, several top bankers departed as part of a reorganization of the global banking division under new co-head Matthew Westerman.

HSBC has been cutting tens of thousands of jobs across its operations as part of a broader effort to improve returns. The bank is scheduled to disclose its results for the fourth quarter on Feb. 21.

--Margot Patrick

Guotai Junan

IPO Could Raise

$2 Billion or More

Guotai Junan Securities Co., China's third-largest brokerage firm by assets, has filed for a Hong Kong initial public offering that people familiar with the situation say could raise $2 billion or more by midyear.

The Shanghai-based firm filed for its IPO with the Hong Kong stock exchange on Friday. A spokeswoman for Guotai Junan didn't respond to a request to comment.

Chinese brokerages have been tapping the offshore market to fund expansion plans. Citigroup Inc.'s China securities joint-venture partner, Orient Securities Co., China Merchants Securities Co. and Everbright Securities Co., all launched multibillion-dollar offerings in Hong Kong last year. All three companies are trading marginally below their listing prices.

Guotai Junan, which listed in Shanghai in 2015, plans to use proceeds from the IPO to develop its prime brokerage, personal-financial services and investment-management businesses, as well as for overseas expansion and the growth of other divisions within the firm, according to the filing.

--Alec Macfarlane and Ese Erheriene

SOCIÉTÉ GÉNÉRALE

Lender to Settle Mortgage Claims

Société Générale SA has agreed to pay a $50 million civil fine to settle federal claims that it defrauded investors, including financial institutions, in the marketing and sale of a residential mortgage-backed security, the Brooklyn U.S. Attorney's office said Friday.

As part of the settlement, the French bank admitted that it didn't tell investors that loans underlying the security were underwritten outside of the loan originators' underwriting guidelines. The bank also falsely told investors that none of the values of mortgages on properties within the security exceeded the value of these properties, according to the agreement.

"Société Générale is pleased to have resolved this legacy matter involving a business that the firm exited in 2008," said James Gavlion, a spokesman for the firm.

--Erica Orden

(END) Dow Jones Newswires

January 22, 2017 16:57 ET (21:57 GMT)

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