Bloomberg News

HSBC Said to Hire Senior Stress-Test Official From U.K. FSA

November 29, 2011

Nov. 29 (Bloomberg) -- HSBC Holdings Plc plans to hire a senior official from the U.K.’s Financial Services Authority who worked on banking stress tests as head of capital management, according to two people familiar with the situation.

Alan Cathcart is scheduled to start work at the lender at the beginning of next year, said one of the people, who declined to be identified because the appointment isn’t public.

The European Banking Authority will release as soon as next week updated stress-test recommendations for banks to raise additional capital in the wake of the euro-area debt crisis. U.K. banks probably won’t have to raise more capital, Andrew Bailey, head of banking supervision at the FSA said Nov. 24.

Cathcart, is at least the eighth senior official to leave the regulator since the government said in 2010 it would abolish the agency.

The FSA has restructured into two divisions to prepare for a government-mandated handover of lender supervision to the Bank of England. The supervisor has split internally into a prudential regulatory authority and a consumer protection agency.

Spokesmen for the FSA and HSBC in London declined to immediately comment. Cathcart didn’t immediately return a voicemail at his office at the FSA.

--Editors: Anthony Aarons, Christopher Scinta

To contact the reporters on this story: Ben Moshinsky in London at bmoshinsky@bloomberg.net;

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.


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