Bloomberg News

HSBC Says North America CEO Booker to Leave After 30 Years

October 07, 2011

(Updates with closing shares in fifth paragraph.)

Oct. 7 (Bloomberg) -- HSBC Holdings Plc, Europe’s largest bank, said Niall Booker, group managing director and chief executive officer of HSBC North America Holdings Inc., is leaving after three decades with the bank to be replaced by Irene Dorner.

Dorner, group general manager and president and CEO of HSBC USA will take the new role on Nov. 1, HSBC said in statement today. Patrick Burke, group general manager and CEO of HSBC Finance Corp., will report to Dorner.

“I am delighted to have such experienced and talented Chief Executives in Irene Dorner and Lindsay Gordon in place to take the region forward,” Chief Executive Officer Stuart Gulliver said in the statement.

Booker’s career at the lender spans 30 years, including periods in India and the Middle East, HSBC said. He joined the North American unit, which included the former Household International subprime lender, in 2007 amid an overhaul following soaring bad loan provisions. He also led the unit during its sale of upstate New York branch network to First Niagara Financial Group Inc. in August for about $1 billion as it pared U.S. operations.

Halted Lending

HSBC declined 0.2 percent to 509 pence in London, valuing the bank at 90.8 billion pounds ($142 billion).

Dorner and Lindsay Gordon, group general manager, president and head of HSBC Bank Canada, will report to Gulliver, who became CEO in January.

The bank acquired Household, now known as HSBC Finance, for $15.5 billion in 2003. In 2009, HSBC halted consumer-finance lending at the unit, which has contributed to about $60 billion of provisions in North America, according to data compiled by Bloomberg.

The bank is in talks to sell its U.S. card and retail services unit. as the lender focuses on growth in emerging markets. Capital One Financial Corp. will pay a $2.6 billion premium to the division’s loans to customers, for a total price of about $32.7 billion, HSBC said on Aug. 10.

--Editors: Jon Menon, Francis Harris

To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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