HSBC Holdings Restructures its Investment Banking Division to Reduce Costs and Increase Returns

HSBC Holdings PLC has recently undergone a complete reorganization of all its operations that deal with investment banking in a bid to reduce costs and increase efficiency. The London based firm did an overhaul of its operations and even let go of some senior bankers in the process. This was revealed by one of the firm’s spokesperson who added that the sole purpose of the restructuring was to cut operational costs and bring together sector and product teams.

These changes have come after HSBC formed a global banking division earlier on in February. Furthermore, the firm hired Mathew Westerman, a former executive at Goldman Sachs to co-head the new division with Robin Phillips. HSBC is one of several banks that restructured their operations in a bid to cut costs. The changes were announced in two internal memos. Furthermore, HSBC also announced the appointment of the regional co-heads for its global banking section as well as the creation of a new advisory group that will bring together corporate finance and M&A. Groups that have overlapping clients were also combined.

The newly formed global banking division is one part of HSBC’s global markets and banking business that is headed by Samir Assaf. This division accounted for about $7.9 billion of the total $18.87 billion profit before tax received in 2015. Stuart Gulliver, the Chief Executive of HSBC had hinted in 2015 that the bank faced a huge challenge in 2016 as it tried to lower its operating costs and effectively keep them down. He also said that HSBC would strive to increase its total revenues. The bank has poised itself to counter weak economic conditions experienced in the Asian markets.

Martin Lustgarten

Martin Lustgarten is a successful financial professional and investment banker. He hails from Florida and currently lives in Ponte Vedra Beach. Today, he heads his own firm called Lustgarten, Martin as its CEO. He oversees all operations at the firm. He has successfully grown the firm from a small startup into a successful investment bank in Florida.

Martin is also involved in several philanthropic initiatives and is active on Facebook. His hobbies include juggling and collecting vintage items that please him. He also trades in beautiful vintage watches.

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Madison Street Capital’s Co-Founded Is Honored Once Again

In 2007, there were 7,600 hedge funds in existence. In 2015, that number soared to 11,000. Hedge funds are feeling the impact of uncertain economic times and the fact that China may throw the world into another recession that could make the 2008 recession look tame. Madison Street Capital, the Chicago-based investment banking firm’s hedge fund division, is doing better than other hedge funds thanks to the leadership of CEO, Charles Botchway, and COO Anthony Marsala. Marsala was recently named the winner of the 7th Annual Emerging Leaders Award, for his accomplishments in the Merger and Acquisition industry, according to the Chicago Tribune. has published several articles about the success Madison Street Capital has had in providing corporate advisory services, strategic analytic services, valuation services and merger and acquisition services. Marsala plays a leading role in offering those services to clients around the world. Madison Street Capital has a major interest in emerging markets in South America, Asia, and North America. Marsala was named the 2016 winner of the Emerging Leaders Award given by the National Association of Certified Valuators and Analysts because of the success Madison Street Capital has had putting deals together in countries like Brazil, Thailand, and Vietnam. Marsala is also a participant in the 2016 Crain’s Leadership Program.

The Emerging Leaders Award was born out of the National Association of Certified Valuators and Analysts 40 under 40 award program that has been in existence for several years. Every year the winners are honored at a black-tie event held at the Athletic Club in New York City.

There is nothing negative to say about Madison Street Capital’s performance in the merger and acquisition industry or the hedge fund industry. The hedge fund industry was more than a $2.6 trillion business in 2013, but many investors are pulling out of hedge funds because of the high fees and poor returns. But Madison Street Capital is not experiencing the lackluster performance of other funds thanks to Botchway leadership and the financial expertise that Marsala brings to the table.

Many economists believe 2016 is going to be a difficult year for investors that don’t protect themselves from the recession that is spreading across the globe. European funds are having a difficult time, and many companies around the world are suffering from poor profit results. Madison Street Capital comes alive in time likes these, according to Marsala. Companies around the world are looking to merge or to be bought by stronger companies, and Madison Street Capital is playing a role in those mergers and acquisitions.

Marsala and Madison Street Capital continue to win awards for outstanding performance in an industry where there are a lot of big fish with sharp teeth. But Madison Street Capital knows what it does best and doesn’t stray from the company’s proven strategy.