HSBC to Remain Head Quartered in London
You may have been keeping a close eye on the recently unfolding Binary Options related news story in regards to HSBC threatening to leave the UK and basing its Head Office in another country.
The main reason why HSBC decided that a possible relocation elsewhere was perhaps the best move was a potential increase in taxes and levies that would be imposed on this banking giant if they remained in the UK.
However, the suggestion and announcement that HSBC may relate abroad was seen by many industry commentators as a game of chess with the UK Government, and was described as a way to hold the UK Government to ransom and hopefully see HSBC being given some form of tax breaks to remain in the UK.
Financial Times – Why HSBC picked London
In a recent Budget Statement given by the Chancellor of the Exchequer is was announced that certain tax breaks and changes in Bank Levies was to come into force, and as such that game of chess does appear to have worked.
Yesterday, Executives of HSBC voted unanimously to remain in the UK, which does prove that the UK Government is always prepared to be flexible when it comes to giving certain companies tax breaks and doing anything that is required to keep large companies and in this case Banks located in the UK.
Whether this wheeze is going to work for other companies in different market sectors does of course remain to be seen, but thanks to the Budget Statement it does appear that there will be no major Banking Institutions packing up their bags and moving to other countries in the very near
future.
As a Binary Options trader who is new to placing Banking related trades, you may be interested in placing a number of options and trades on Baking Institutions, however if you are then please be aware that recently that market sector has been a very volatile one with share prices rising and falling quite noticeably on Banking stocks daily.
However, with many Banks having passed the recent stress tests imposed on them by the UK Government and with all Banks now required to have large cash holdings in case of times of difficulty it is unlikely you are going to see any bank runs or any large bailouts which have been required in recent years on any of the many Banks based and operating in the UK.
