HSBC Holdings Plc (NYSE:HSBC) is winding down its geopolitical risk team, a group once tasked with helping top executivesand occasionally clientsnavigate rising global instability. The decision affects fewer than 10 roles across Asia and Europe, but its timing has raised eyebrows. It comes just as tensions between the U.S. and China are again flaring, and President Donald Trump’s return to power adds fresh uncertainty to global trade flows. HSBC says existing teams will now absorb the risk advisory function as part of a broader effort to streamline operations and cut costs under CEO Georges Elhedery.
This move puts HSBC on a different path from some of its competitors. JPMorgan recently launched a Center for Geopolitics offering insights on the Middle East, Russia-Ukraine, and other hot-button regions. Goldman Sachs and Lazard have also been expanding geopolitical advisory offerings, aiming to give clients a strategic edge in a volatile landscape. Meanwhile, investment banking revenue across the top five U.S. banks remains nearly 40% below 2021 levelsdragged down by deal inertia tied to geopolitical uncertainty. The demand for sharper political intelligence isn’t slowing down. In fact, it could be accelerating.
HSBC insists it’s not backing away from helping clients manage global riskjust doing it differently. We continue to focus on supporting our clients as they navigate a complex and fast-moving international environment, the bank said in a statement. But paired with Wells Fargo’s recent move to halt travel to China after a senior banker was blocked from leaving the country, the sector’s anxiety is palpable. Whether streamlining pays offor leaves HSBC exposedwill be one of the more interesting banking stories to watch in the months ahead.
This article first appeared on GuruFocus.