HSBC chairman appointed UK's new minister of state for trade

HSBC chairman Stephen Green has been officially appointed UK Minister of State for Trade and Investment by Prime Minister David Cameron.

Green, 61, will stand down as Group Chairman of HSBC and take up his unpaid ministerial role early next year.

"With Stephen's experience and expertise, I know he will make an invaluable contribution towards this crucial agenda, helping to drive strong economic growth in the UK," the Prime Minister said in a press statement.

Green began his career with the Ministry of Overseas Development, before joining McKinsey & Co Inc in 1977. He joined HSBC in 1982 and became an Executive Director in 1998. He served as Group Chief Executive from 2003 to 2006 before his appointment as Group Chairman, taking over from Sir John Bond. He has worked in Hong Kong, New York, the Middle East and London.

Foreign Secretary William Hague said that the appointment will "hugely strengthen our work to secure the UK's economic recovery, promote open markets and inward investment and support greater access for British companies worldwide".

Green's Ministerial role will be to work across the Department for Business and the Foreign Office, to forge "strong international relationships to open new trade links, promote British business overseas and maximise inward investment to the UK," the Prime Minister continued.

Financial industry speculation has pointed to the bank's chief executive Michael Geoghegan or former Goldman Sachs president John Thornton as Green's most likely successors, according to reports.

However, a hurdle to Geoghegan, 56, getting the chairmanship is his current position as chief executive, the Wall Street Journal said yesterday.

He was recently relocated to Hong Kong to emphasise the bank's Asian focus.

Green has been a vocal supporter of prudent corporate behaviour at HSBC, which is one of the few large banks that did not tap government bailout funds during the global financial crisis.

Placing Geoghegan in the chairman's seat could see Stuart Gulliver, HSBC's highly-paid investment banking chief, promoted to chief executive, the Financial Times said.

Others speculated that the bank would appoint a non-executive director with Thornton, who is an HSBC board member and non-executive chairman of HSBC North America, as a likely contender for the chairman's job.

Useful background

Vince Cable, Business Secretary, said in a press statement that Green's background will be valuable for the trade white paper he aims to publish at the turn of the year.

"In Stephen we will be appointing a Minister with a long career as a leading international banker, one of the few to emerge with credit from the recent financial crisis, and somebody who has set out a powerful philosophy for ethical business.

Green himself said in a statement: "It is an honour to accept this new role with Her Majesty's Government, serving Britain in the vital areas of trade and investment.

"In an increasingly competitive and international world, trade and investment are ever more critical to Britain's economic success and I am delighted to be joining the Government at this exciting and challenging time."

source: Gulf News