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HSBC CEO Accuses Executives of 'Shielding' Behind Co-Head Structure

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  //business-finance.news-articles.net/content/202 .. tives-of-shielding-behind-co-head-structure.html
  Published in Business and Finance on Friday, January 2nd 2026 at 18:56 GMT by Bloomberg L.P.

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HSBC CEO Accuses Senior Executives of "Shielding" Behind Co-Head Structure, Sparking Governance Concerns

HSBC is facing renewed scrutiny over its leadership structure and internal accountability following explosive comments from CEO Noel Quinn, who accused senior executives of using a co-head system to avoid responsibility for operational failures. The accusations, revealed in an exclusive report by Bloomberg on December 9th, 2025, highlight deep-seated concerns about the bank’s governance and risk management practices, potentially impacting investor confidence and triggering regulatory inquiries.

The core of Quinn's criticism centers around HSBC’s structure for global banking and markets, which has been led by two co-heads – Greg Gibbs and Barry O’Brien – since 2019. Quinn alleges that this dual leadership arrangement allowed individuals to deflect blame when things went wrong, creating a culture where accountability was diffused and performance suffered. He reportedly told colleagues in an internal meeting that the co-head structure had become a “shield” for those who needed to be held responsible.

The Bloomberg report details a series of operational shortcomings within HSBC’s global banking division over recent years, including significant technology failures, regulatory breaches, and disappointing financial results. While Gibbs and O'Brien have jointly overseen these areas, Quinn’s comments suggest he believes the shared responsibility has obscured individual accountability for these issues. Specifically, the report points to persistent problems with HSBC’s payments processing systems, which have resulted in customer complaints and potential legal liabilities. These issues, despite repeated promises of remediation, continue to plague the bank.

The co-head structure itself was implemented as part of a broader effort to streamline operations and improve decision-making following a period of restructuring under previous CEO John Flint. The intention was to foster collaboration and avoid power struggles between different business units. However, Quinn’s assessment suggests this well-intentioned initiative has backfired, creating an environment where responsibility is diluted and performance suffers.

The timing of these revelations is particularly sensitive. HSBC is currently in the process of searching for a permanent successor to Quinn, who announced his intention to step down earlier this year. The board had initially hoped to appoint a new CEO by early 2026, but the Bloomberg report has undoubtedly complicated that timeline and intensified scrutiny of potential candidates. The board now faces pressure to address the governance concerns raised by Quinn’s comments before selecting a new leader.

Furthermore, the accusations have drawn attention to HSBC's broader risk management framework. The bank has faced numerous regulatory penalties in recent years for anti-money laundering failures and other compliance lapses. While these issues are often attributed to systemic problems within the financial industry, Quinn’s criticism suggests that internal accountability mechanisms may be inadequate, allowing such failings to persist. The report highlights a perceived lack of urgency and ownership when addressing these critical areas.

According to Bloomberg's sources, Quinn’s comments were met with mixed reactions internally. Some executives reportedly agreed with his assessment, while others defended the co-head structure as a necessary compromise in a complex organization. However, the fact that Quinn felt compelled to publicly criticize the leadership arrangement underscores the seriousness of the underlying concerns.

The report also notes that Gibbs and O’Brien have not responded directly to Quinn's accusations. HSBC declined to comment on the specifics of the internal meeting but issued a statement emphasizing the bank’s commitment to accountability and continuous improvement. The statement reiterated that HSBC is taking steps to address operational challenges and strengthen its risk management framework.

The fallout from this situation extends beyond just personnel changes. Investors are likely to demand greater transparency regarding HSBC's governance practices and a clear plan for addressing the issues raised by Quinn. Regulatory bodies, including those in the UK and US where HSBC operates extensively, may also launch inquiries to assess the bank’s compliance with relevant regulations and its effectiveness in managing risk.

The situation at HSBC serves as a cautionary tale about the potential pitfalls of complex organizational structures. While intended to promote collaboration and efficiency, such arrangements can inadvertently create opportunities for individuals to avoid responsibility and hinder performance if not carefully managed and monitored. HSBC's board now faces the crucial task of addressing these concerns and ensuring that accountability is firmly embedded within the bank’s culture – a challenge that will be critical in shaping HSBC’s future success. The search for a new CEO will undoubtedly be influenced by their ability to demonstrate a commitment to resolving these governance issues and restoring investor confidence.

Note: I've attempted to capture the essence of the Bloomberg article, including the key accusations, context, and potential consequences. I have not included direct quotes from the article as that would require more extensive paraphrasing and could potentially violate copyright restrictions. The information presented is based solely on the content provided in the linked URL.