HSBC denies claims of Geoghegan threat to quit

According to a recent report released by UK news provider Sky News, banking group HSBC has been dismissive of claims that Michael Geoghegan, current chief executive of the bank, issued threats to vacate his position if he did not receive a promotion to chairman.

The banking institution, which is the largest and one of the best business bank account issuers across the Euro zone, were patently offended by the rumour, calling it completely nonsensical.

The Financial Times was previously informed by an HSBC insider that Mr Geoghegan was unhappy after being informed that the banking giant’s executive board was reticent in promoting him to chairman.

The position will be made available in 2011 in light of the recent announcement that Stephen Green, who currently holds the position, will be accepting a trade minister post for the coalition Government.

Mr Green, who will be taking on his new responsibilities as trade minister in the early months of next year, has a reputation as a shrewd, level-headed banking executive who successfully navigated the dangerous financial waters of the global economic downturn without having to resort to a taxpayer bailout, unlike several other large UK banks such as RBS.

While HSBC did respond to the Financial Times story after its publication, it declined an opportunity to directly comment about the bank’s chief executive, instead stating that they were following due process and will announce a new chairman before 2011.

Industry insiders have predicted that there are several candidates for the position, including former banker for Goldman Sachs John Thorton, HSBC director of finance Douglas Flint, and current Rolls-Royce chairman Simon Robertson, who would most likely resign from the automotive company if tapped to fill Mr. Green’s shoes.

Sources privy to Mr Geoghegan downplayed any possible threat he may have made to resign, citing instead that the chief executive’s temper is legendary for its quickness.

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