Read this piece published yesterday by the Labour Party on its news site, and contemplate the future: “Malta would be better off without HSBC. Pity Mintoff is not around.”
HSBC BANK LETS MALTA DOWN – Part 2.
Maltastar, Monday, 26 Nov 2012, 05:53
Like its predecessor Barclays Bank, HSBC has hardly considered Malta’s economic advancement imperatives in its decisions.
Before Labour came to power in 1971 Barclays operated here more in the nature of a savings, rather than a commercial, bank. The country’s copious savings were mainly siphoned off to Britain, rather than used to part-finance local development projects.
Such an important function was unofficially assigned to the National Bank of Malta, but because the task was too colossal for its size, the bank’s management grossly overtraded, especially in property development investments on which in turn it secured most of its industrial lending.
Inevitably, it found itself in a precarious state of illiquidity, probably also insolvency, and had to be salvaged by the state in order to safeguard its many small depositors.
Barclays was then a different story; it soon realised that its days in Malta were counted once its impact on the economy was hardly perceptible. Very wisely, it agreed to sell out completely to the government without any fuss, grateful that it had had such an easy highly-profitable stay whilst it lasted.
25 years down the line, and with a change to a weak government, hey presto, HSBC Bank was soon encouraged to replicate Barclays. On the pretext of a superior banking acumen, HSBC preached efficiency as it gradually reduced the size of the workforce and of its share in Malta’s financial services sector. Any of its departments which did not reach up to a defined high level of profitability were to stop operating.
Like Barclays, it became more interested in exporting local savings than in utilizing them to finance development, not merely directly as an investment bank, but also indirectly as a commercial lender. Such a lacuna was soon to be filled successfully by the Bank of Valletta, enabling it to outgrow, even outshine, HSBC.
But that wasn’t enough. Several HSBC branches have been closed down without hardly any social responsibility consideration. To date, BoV has not only ever closed down any branch, but has added on, even outside Malta.
Small wonder that HSBC employees started feeling insecure in their jobs, a phenomenon hardly ever associated with any banking institution. They have been told to brace themselves for spells of redundancies resulting from a downsizing exercise: at a faster rate should there be no change of government after the forthcoming general election.
HSBC Bank went to the extreme of asking their over-45-years-old employees to re-apply for the very jobs which they have carried out for decades.
They would need to be re-assessed afresh for suitability! And you know what? Several have in fact been rated as unsuitable and demoted.
It was only on the strength of a collective agreement that these unfortunate officials retained at least their basic salaries, despite efforts by their employer to breach them; the matter reached the courts which found against HSBC. Far from an exemplary employer.
Disgraceful for any bank to behave in this manner towards its employees. Most people, however, are fully aware of the prevailing mindset of several foreign establishments: with GonziPN in government, the mighty act with impunity in every sector of the economy. Most notably in the financial services one: the MFSA merely looks on, almost in delight, with its chairman’s sight apparently more focussed on the Cayman Islands than locally.
Furthermore, bankers now notice how the ‘suasion’ doctrine, so sacred between banks and their controller, is totally absent from MFSA’s handbook. Just one illustration from personal knowledge: why did the MFSA never approach HSBC when it claimed that a cleared foreign cheque was for ever subject to ‘unclearing’?
HSBC lost its case in the court of first instance, but had the audacity to appeal. That was years ago: the appeals court is far too busy with other cases! Typical.
Malta would be better off without HSBC. Pity Mintoff is not around.
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How come they are not repeating what they said a few years back about John Dalli and the HSBC deal? They only mention Gonzi in this article. Where they wrong then or now they simply are his bed buddies? Maybe even his busines partners in the Sargas deal?
well said numerus99, You hit the nail on its head
Such crap, but so well written. Are we being invaded with ghost writers?
Is the way HSBC is treating its long serving employees and small clints crap Mr Purdie?
May I ask you to cite examples, Stingray? Generalizations don’t carry much weight with me.
Harry: Just ask HSBC employees for their opinion on HSBC. They came here because they found a very weak government ready to sell the family silver for peanuts, just to have the name HSBC – similar to having unneeded projects in Valletta simply to have the name Renzo Piano !
So you’re saying that HSBC is not needed? Oh I get it, the concept of competition is alien to you especially in your proud Labour era…feel free if you want me to explain this concept to you
Mhux hekk ghidilhom sur bravu,izda li jekk jitla il-labour jitilfu xogholhom.
Privitera is the same guy who sold his family silver for a younger pussy.
it’s not only a matter of competition. Foreign investors are afraid to deal with unknown banks. I work for a German company and the boss only wants to deal with HSBC, even if the charges are sky high.
The writer of this ‘Opinion’ piece on Maltastar could well NOT be a ghost at all! He signs as ‘Maynard’, after the world- famous economist J M Keynes.
Could he be the same Opinion writer on economic issues on the Malta Independent on Sunday? If so, his name could well be Alfred Mifsud who was Chairman of Mid-Med Bank at the time of its privatisation.
Misfud was a familiar face on the MLP media during Alfred Sant’s leadership but for some reason (CET/VAT?) he fell out of favour during Sant’s short stint in government.
Recently he has been making a comeback on PL media. Considering that he is an ex-Barclays employee and a Mid-Med chairman, if he is indeed the ghost writer of this piece (this is Part II), he heaps praise on BOV.
Could he be vying for that Bank’s chairmanship, once JM is in power?
You’ve got it right. This guy has been fuming since he got bounced. Figured he wrote ths piece.
First time he lowered himself to post on the dummie’s website.
He really should do something about his long locks, hanging down and over his neck, doesn’t go well with his elongating forehead.
Well, if Joseph’s cabinet includes those who may have some serious issues with the banks, desperate to get their business plan implemented asap, details slot into place.
They never expected 2008, remember?
I believe that Labour’s manifesto should spell it out to all, loud and clear. Their plan for Malta is simple – scare off all foreign investment.
The sign of being truly progressive, I guess.
Labour is safe for business. And Labour will bring in more foreign investment. Pity (the original) Mintoff is not around.
What plans, taxes and one-offs, does the Mintoff clone have in mind for the banking sector?
What socialist drivel. Do Labour REALLY want to have a go at HSBC now? Must they insist on shooting themselves in the foot in the run up to election day? Honestly.
Who is Pity Mintoff? Is it a brother or sister of il-Fusellu?
Nope, he’s the fella with the eternal need for sunblock
The English is so bad I gave up reading.
You should exchange notes with Harry Purdie. He thinks it was tops, as far as written English goes.
HSBC has paid millions of euros to the Maltese treasury over the years. Mid Med Bank doesn’t even come close.
“Pity Mintoff is not around”. What a stupidity.
Mintoff would never be elected today. Can you imagine Mintoff on Luxol grounds telling the young Labour crowds that computers, smartphones, colour flat HD television sets and i pads would be banned if he were to be elected. Or their future is waiting for them mal-korpi.
What a joke these Labourites are.
What you wrote proves that Mid-Med Bank was handed to HSBC for peanuts ! You did not deny one word of the above report !
What shining logic, Eddy/Eddie. Just like the logic displayed by your previous hero Alfred Sant when he claimed that all non-voters for the EU referendum were to be counted as “No” votes, because they did not say “Yes”.
Yes, Eddie, like the Eddie that made a difference, unlike you, who only makes plenty of sound. Let me rub it in, Eddie – eddy is the following:
http://en.wikipedia.org/wiki/Eddy_%28fluid_dynamics%29
Yes, it’s Eddie, like it or not, just as in Eddie Fenech Adami.
No Eddy, he just ignored you.
This evening I managed to catch the last 20 minutes of Bondiplus. I must say, Tonio Fenech was sharp and superbly eloquent. He didn’t use the teleprompter like Muscat. Absolutely no match for Anglu.
Tonio is eloquent and focused. He has an extraordinary vision and a good grip when it comes to financial matters. Others had to close shop in order to appoint technocrats at the helm half way through a legislature. We have Tonio within an arm’s reach. Friends, on Friday he deserves our vote.
I watched Fenech as well, but he didn’t come across as eloquent at all IMO. He was long-winded, completely rehearsed, and lacked any emotion whatsoever.
He reminded me of one of those diligent, studious kids reciting answers to a teacher. Not impressed with his skills as an orator. He also lacks charisma.
I still respect him immensely for what he’s managed to do in his post these last years though.
I saw the whole program. In my opinion, Mr Fenech answered much better than Dr Busuttil.
Reading this article should be enough to convince any floating or disgruntled nationalist voter what a new labour government would bring Malta back to. Do they realise how many people are employed by HSBC in their branches and call centres? It seems that the labour party is having second thoughts about itself being capable of ruling the country and is buying the rope to hang itself by writing such garbage.
Mid-Med Bank’s presence in the story is noticeable by its absence: “25 years down the line…”
Some points:
Mid-Med Bank was always a haven of MLP blue eyed boys (Bertu Pace and Leo Brincat come to mind immediately, there are more), no wonder HSBC is doing this “re-employment” exercise.
How is it that the many (Maltese) shareholders are never mentioned in this writeup?
“Pity Mintoff is not still around”.Are we waiting for the return of a second Salvatur?
HSBC shareholders should be sent this carefully written article and be warned about the consequences if they vote for Joseph-the second Salvatur.
This article smacks of a nostalgia of the socialist nationalization days under Mintoff. Its author seems too familiar with of the way banking was conducted then and is reminiscent of the days when the Labour party controlled the banking sector.
The writing is on the wall; HSBC will be nationalised as soon as Labour is in power.
Isn’t this what Helena Dalli wants to do for Public Service Employees?
I agree with Maltastar. PITY MINTOFF IS NOT AROUND
Good riddance he isn’t!
The above article should be given great prominence in the local media. It just goes to prove that the PL’s mindset has not changed.
Maltastar is Joseph Muscat’s and his motley crew’s mouthpiece and it follows that what is stated in the article is Labour’s take on HSBC and possibly other foreign banks operating in Malta and flooding our coffers with taxes.
Will JM force their hands leading them to pack up and leave?
The future looks bright!
The future’s ginger.
Is this how the LP intends to attract foreign investment to Malta in order to maintain our employment level at its present very satisfactory level when compared with our neighbours in the European Union? It looks more as if they want to return to the days of mass unemployment and cheap labour in labour corps under military discipline.
I hope this piece serves as a warning to all those who are considering to vote Labour.
It is unbelievable that after 25 years (bar 22 months) of steady growth and prosperity we still have “Pity Mintoff is not around” kind of people….tal-biza
In Labour, the more things change, the more they stay the same.
What Labour does not say here is that the global stability of the HSBC bank during the financial and economic crises made sure that Malta’s financial sector remained unscathed, protecting employment on the way.
This could really be one of those things that can change an election. The PN are so lucky to have such an opposition, I hope they can bank on it, cause this is a really scary article coming directly from the party.
Father, forgive them; for they know not what they are saying.
This piece reminds me when the Lega Nord claimed a bank for itself to ‘restructure the economy of the region’. A complete mess, followed by the inevitable investigations into tampering with the board of directors and charges of collusion.
The PDS, ex-communists, tried to do the same with another bank. Italy still suffers the consequences to this day, its politicians the real source of financial speculation, which only Mario Monti seems capable of quelling. Observers have already made it clear they prefer Renzi to take on Monti in the forthcoming elections next March.
In Malta it seems Labour are opting for BOV. In a similar article on the same page, it’s described as ‘de facto government controlled’.
What’s scary is how the MFSA is depicted as useless and how a government should take on the role instead. The ideological standards are clear, this being the latest in a long series of articles which target the financial services sector as some unregulated ‘foreign’ (they just love the word) body to be kept under check. Capitalism as a virus.
Whoever wrote it doesn’t care for the employees. Joseph’s a liability to all of us, more so when he sticks to his silence. He’s ultimately responsible for his party’s news website, commentary and all.
Smacks of Edward Scicluna. Back to Mintoff economics. What about Sammy Meilaq as HSBC chairman?
Are they for real? Do they not know that there are still some of us around who lived (in constant fear) during the vindictive days of Mintoff?
It is hilarious – were it not so sad – to read that the National Bank of Malta had liquidity problems when it was Mintoff himself who started the run on the bank and appropriated it for himself as Mintoff WAS the State in spite of our so-called democratic system in those dark days terrorised by Fusellu and Lorry Sant’s minions.
Why didn’t Alfred Mifsud put his name to this article? Is he ashamed of it or are his days numbered, rather than counted?
This says alot about PL’s possible plans if they are elected to government. It shows that they have not changed.
It is extremely worrying especially for those who have money invested at HSBC, to the employees of this bank and to the shareholders.
Reading this article made me nauseous.
Instead of appreciating how the Nationalist Party has created a stable enough country and opened our borders to encourage foreign investment, in a country with very little natural resources, the author of this article is stuck in the 60s and 70s.
The erratic and destructive nationalisation of firms then led to a great decay in the service given, hardly any competition, very little and slow progress, a problem which is still very evident in communist states or countries with an excessive number of national companies or institutions.
It is shocking how this reality seems to still be rejected by Labour, and how they seem to still perceive Capitalism as evil rather than a necessary evil needed to promote efficient, productive, and competitive enterprises and ultimately a sharper economy.
This is an open letter I sent to Dr. Franco Debono and would like you daphne to publish it here please as well:
Suggett: Breaking News: Zammit Dimech appointed Minister..
Ghaziz Dr. Franco,
jiena l-ewwelnet nifrah lil onorevoli zammit dimech li kien appuntat ministru, jiena cert u perswaz li se jaghmel xoghlu sew kif dejjem ghamel.
Pero’ inhoss li inti stajt taghti kontribut hafna ikbar kieku jahasra smajt minni u irrangajt l-affarijiet ftit gimghat ilu meta bdejt niktiblek, kieku illum inti inhtart il-ministru tal-affarijiet barranin. Jiena perswaz li inti kont taghmel xoghol ta’ ministru tal-affarijiet barranin perfettament u konna nergghu nitilghu fil-gvern u kont taghmel hames snin ohra hemmhekk bhala ministru biex tahdem vicin mal-prim ministru taghna li kapaci jaghmel malta genna tal-art iktar milli ahna jekk intuh ftit fiducja ohra.
Dr. Gonzi kien diga beda jiehdok mieghu new york biex irawwmek ghax il-posizzjoni ta’ ministru tal-affarijiet barranin kienet impengija ghalik u inti kont tidhol ezatt hemm u nahseb li dr. gonzi kien jaf li inti negozjatur prim u kapaci tiddilja mal-barranin u kont sahansitra taghmel isem ghal-malta u tahdem ghal paci fil-mediterran.
imma dan kollu inti tajtu bis-sieq ghax ma tridx trattab qalbek. isma minni fadallek cans, ghadu mhux tard wisq. rattab qalbek u ejja ha nitkellmu.
inselli ghalik,
Guzeppi tal-Mosta
kullhadd jafni
Socialism – summed up in 13 words
“Several HSBC branches have been closed down without hardly any social responsibility consideration”
I particularly enjoyed:
“downsizing exercise: at a faster rate should there be NO change of government after the forthcoming general election”
Talk about having your cake and eating it – the PL attacks HSBC but expects it to fare better under a PL administration – presumably regardless of whether they find another Mintoff.
What they’re really saying, of course, is that they don’t like HSBC and wish that Mintoff was around to nationalise or liquidate it, but HSBC employees should vote for them anyway.
Riega gej il-babaw….get a life Daphne.
I honestly think that there is such a thing as a parallel universe, because Peter is definitely not living in ours.
“Inevitably, it found itself in a precarious state of illiquidity, probably also insolvency, and had to be salvaged by the state in order to safeguard its many small depositors.”
It was not salvaged by the state. It was robbed off it’s shareholders and taken over for free.
Ghax hekk ried Mintoff bl-ghira bazwija li kellu.
Kemm tafu ddawruha l-istorja, Alla jbierek.
If Labour plans to scare off HSBC, what happens to all those hundreds of jobs at the Swatar Call Centre?
What strikes me in the article are the words “Malta’s economic advancement” … focus on the gist not the wording.
Coconut English mid-dehra!
Is this their strategy to lower the tax rates? I must say, we have a rather interesting future ahead of us.
“salvaged by the state”
Just a typo, he probably meant ‘savaged by the state’.
This story of HSBC has been around for quite some time.
Many strong Labour supporters have been spreading the story that HSBC has not yet left because they did not find a buyer yet.
Now it is on the media because election is very close.
Therefore, they are trying to scare the HSBC employees. But as usual the way they have put it will work against them.
The same is being said about Arriva and Labour supporters are also saying that we will have to go back to the old buses system because Arriva went bankrupt. I wonder how they went bankrupt when they have also bought the share which Tumas Group had in Arriva, and now they are running the show on their own.
Labour is Labour and they will never change and when the election comes close they are prepared to join the devil to win votes let alone invent stories on such serious and strong foreign business people.
Minflok jaghmlu l-kuragg lil poplu jipprovaw joholqulu il-biza.
Dak hu il Baw Baw Peter f. Fenech u mhux Daphne
All that was missing in Maltastar piece was that Denis Sammut (Executive Director and PL hatchet man at BOV during “golden”years) will be making a comeback on our financial services scene.
Labour is safe for business we are told. HSBC is not on their safe list. I can just imagine how other foreign investors feel reading this article
I would rid the island of HSBC but not for the reasons mentioned in that article or any of the comments here.
It is like letting in a more devious version of Morgan Stanley, and they have had the carpet well laid out by John Dalli, for them to flourish.