HSBC boss warns of second global economic downturn
Comments(0) The head of Britain’s biggest bank has warned we could soon be heading into a second recession.
Michael Geoghegan of HSBC said he had delayed expansion plans because he fears the upturn could be short lived.
The chief executive said the economy could follow a W-shaped trajectory, with the rebound going into reverse and growth retreating into the red.
Mr Geoghegan’s words carry weight because of the global reach of his bank and its track record on identifying economic turning points.
In February 2007, HSBC was one of the first financial giants to warn of the impact of the sub-prime crisis in the U.S., when it wrote off £6.5billion. The intervention will fuel the debate between Labour and the Conservatives over when to slash public spending and hike taxes.