18 HSBC Leadership. Over the last few years, HSBC leadership has undergone significant change. In 2010, HSBC Holdings plc appointed a new Chairman of the Board of Directors, Douglas J. Flint, replacing Stephen Green, who had become a U.K. Cabinet Minister. 52 A new Group Chief Executive was also selected, replacing Michael Geoghegan, who retired, with Stuart T. Gulliver. In 2012, HSBC Holdings plc also appointed a new Chief Legal Officer, Stuart Levey, former Undersecretary for Terrorism and Financial Intelligence at the U.S. Treasury Department. Mr. Levey replaced the Group’s General Counsel, Richard Bennett. 53 Also in 2010, Sandy Flockhart, became Chairman of Europe, Middle East, Africa, Latin America, Commercial Banking; as well as Chairman of HSBC Bank plc. 54 Mr. Flockhart, who first joined HSBC in 1974, is an emerging markets specialist and, among other posts, headed HBMX in Mexico for five years, from 2002 to 2007. 55 He was also appointed to the HSBC Group Board of Directors in 2008, and became a director of HSBC Bank Middle East in July 2011. 56 HNAH Leadership. At HNAH, the U.S. bank holding company, the persons holding leadership positions have often overlapped with those of HNAH’s key subsidiaries, HBUS, HSBC Securities, and HSBC Finance Corporation. HNAH’s current Chief Executive Officer (CEO), for example, is Irene Dorner, who is also the CEO of HBUS. 57 Her immediate predecessor at HNAH, for less than a year, was Niall Booker, who was preceded by Brendan McDonagh, former Chief Operating Officer (COO) of HBUS. Before Mr. McDonagh, HNAH was headed by Siddharth (“Bobby”) N. Mehta, who was also head of HSBC Finance Corporation, but left the bank when HSBC Finance Corporation’s subprime mortgage portfolio incurred huge losses during the recent financial crisis. The current HNAH COO is Gregory Zeeman; the current General Counsel is Stuart Alderoty; and the current Chief Auditor is Mark Martinelli, each of whom currently holds the same position at HBUS. 58 HNAH’s Chief Risk Officer is Mark Gunton who holds the same position at both HBUS and HSBC Finance Corporation. HBUS Leadership. Over the last ten years, HBUS has undergone numerous changes in leadership, with the head of the bank turning over four times. 59 The current head is Irene Dorner 52
See “HSBC Announces New Leadership Team,” (9/24/10), media release prepared by HSBC, http://www.hsbc.com/1/2/newsroom/news/2010/hsbc-announces-new-leadership. 53 “HSBC appoints Chief Legal Officer,” (1/13/12), media release prepared by HSBC, http://www.hsbc.com/1/2/newsroom/news/2012/chief-legal-officer. Mr. Levey held his position at the Treasury Department from July 2004 to February 2011. Id. Mr. Bennett had headed HSBC Group’s Legal and Compliance department since 1998; in 2010, he had become General Counsel. 54 54 See “HSBC Announces New Leadership Team,” (9/24/10), media release prepared by HSBC, http://www.hsbc.com/1/2/newsroom/news/2010/hsbc-announces-new-leadership. 55 See HSBC Group “Board of Directors,” http://www.hsbc.com/1/2/about/board-of-directors (describing Mr. Flockhart as “a career banker, being an emerging markets specialist with over 35 years' experience with HSBC in Latin America, the Middle East, US and Asia”); interview??. 56 Id. 57 See “Leadership: HSBC North America Holdings Inc.,” https://www.us.hsbc.com/1/2/3/personal/inside/about/corporate-information/leadership/hnah. 58 Id. 59 Information on HBUS’ leadership is taken from its SEC annual reports.