The Lord Green of Hurstpierpoint | |
|---|---|
 Official portrait, 2018 | |
| Minister of State for Trade and Investment | |
| In office 11 January 2011 – 11 December 2013 | |
| Prime Minister | David Cameron |
| Preceded by | Mark Prisk |
| Succeeded by | The Lord Livingston of Parkhead |
| Group chairman ofHSBC Group | |
| In office 26 May 2006 – 3 December 2010 | |
| Preceded by | John Bond |
| Succeeded by | Douglas Flint |
| Group chief executive ofHSBC Group | |
| In office 1 June 2003 – 26 May 2006 | |
| Preceded by | Keith Whitson |
| Succeeded by | Michael Geoghegan |
| Member of the House of Lords Lord Temporal | |
| Assumed office 22 November 2010 Life Peerage | |
| Personal details | |
| Born | (1948-11-07)7 November 1948 (age 77) |
| Political party | Non-affiliated (formerlyConservative) |
| Spouse | Janian |
| Children | 2 |
| Alma mater | Exeter College, Oxford Massachusetts Institute of Technology |
| Profession | Banker Politician Clergyman |
Stephen Keith Green, Baron Green of Hurstpierpoint (born 7 November 1948), is a British politician, formerConservative[1] Minister of State for Trade and Investment, former group chairman ofHSBC Holdings plc, andAnglican priest.
Stephen Green was born on 7 November 1948 to Dudley Keith Green and Dorothy Rosamund Mary Green (née Wickham).[2] After a private education atLancing College, near his family home inBrighton, he attendedExeter College, Oxford, obtaining a degree inPhilosophy, Politics and Economics (PPE) in 1966. Green's parents were active churchgoers and influenced his religious activities both as a young man and later in life; after graduating he spent a year volunteering in theEast End of London at a hostel for recovering alcoholics, a move also reputedly influenced by a visit from a Church of England vicar.[3][4] It was during his time at the hostel that he met Janian Joy, a fellow volunteer, whom he married in 1971.[2] In 1975 (during aHarkness Fellowship, on secondment from the Overseas Development Administration) Green also obtained amaster's degree from theMassachusetts Institute of Technology (MIT).[5]
In 1971, Green began his professional life as a civil servant in theBritish government's Ministry of Overseas Development (now theForeign, Commonwealth and Development Office), where he spent the next six years.[5] In 1977, he joinedMcKinsey & Co Inc. management consultants,[4] with whom he undertook assignments in Europe, North America and the Middle East.
As a result of beingheadhunted, Green joined the thenHongkong and Shanghai Banking Corporation in 1982, initially on a two-year contract,[2] with responsibility for corporate planning activities. In 1985 he was put in charge of the development of the bank's global treasury operations, and in 1992 became group treasurer of HSBC Holdings plc with responsibility for the HSBC Group's treasury and capital markets businesses globally.
In March 1998 Green was appointed to the board of HSBC Holdings plc asexecutive director ofInvestment Banking and Markets, responsible for the investment banking, private banking and asset management activities of the Group. He assumed additional responsibility for the group's corporate banking business in May 2002. As executive director, Green cancelled all executive bonuses in both 2001 and 2002, tellingThe Wall Street Journal in March 2003: "We took the view that a business that had not performed for the shareholder couldn't expect to receive bonuses".[2] The decision saw some key staff leave in protest but it also won the company some praise;Institutional Investor magazine quoted HSBC's then chairman,Sir John Bond, as saying: "We had corporate clients come up to us and say, 'Thank God you've taken a stand'".[6]
In the year before becoming chief executive, Green earned below £1m; HSBC's annual report for the period showed that none of the company's five top-earning employees was a board member. Green toldThe Guardian in October 2003: "Plenty of people in this organisation earn more than me. I genuinely don't care. I can hardly be described as lowly paid. Since when was money the be-all and end-all?" Asked by the newspaper's reporter Jill Treanor how he reconciled the organization's high salaries and bonuses with his religious faith, he replied: "Do I personally feel some kind of incompatibility between what I believe and being in financial services markets? I can only say no".[7]
His appointment as group chief executive took effect on 1 June 2003. Shortly afterwards, in October 2003, HSBC announced that it wouldoffshore the work done by its UK finance processing centres in Birmingham, Sheffield, Brentwood and Swansea to India, Malaysia and China within two years. The move, which represented the largest such offshoring in the financial services sector at that time and would lead to the loss of 4,000 British jobs, led the UK trade unionUNIFI to warn Green that the "gloves were off". He defended the decision, tellingThe Guardian's Jill Treanor:
"If you are a responsible company like us we do need to think about this on a global basis. We have to approach this in a responsible and human way. I also have to bear in mind that people are going to get jobs in India (and elsewhere). It's wrong to pretend you can protect the existing jobs and wrong to pretend there isn't going to be change. It can't be the right response to say that emerging markets have no right to jobs." He added: "Cost minimisation cannot be the only driver of this. There is no way we want to jeopardise the quality of customer service".[7]
Green also oversaw HSBC's acquisition of Household International, a USsubprime lender,[4] as well as its integration into the parent company. He later came to regret the deal,[8] which was the largest acquisition in a series conducted by HSBC in the five years leading up to his appointment as its chief executive.[2]
In January 2005, Green becamechairman ofHSBC Bank plc, the group's UKclearing bank subsidiary, and group executive chairman in June 2006. In its July 2005 issue,Bloomberg Markets magazine reported that HSBC was allowingmoney laundering by drug dealers andstate sponsors of terrorism; the magazine alleged that this had included a transfer of $100,000 in April 2000 to theTaliban in Afghanistan which had subsequently resulted in a fine levied by theUS Treasury Department. Green denied the allegations, calling them "a singular and wholly irresponsible attack on the bank's international compliance procedures".[9] Subsequent investigations however, confirmed thatmoney laundering had taken place atHSBC[10] for several years throughout Green's tenure as chief executive and chairman,[11][12] chiefly for theSinaloa Cartel.[13] Green earned well over £25 million per year at the time.[citation needed] Green's successor as the top of HSBC, Stuart Gulliver, said "between 2004 and 2010, our anti-money laundering controls should have been stronger and more effective and we failed to spot and deal with unacceptable behaviour."[14]
In September 2010, it was announced that Green would join the UK'sConservative–Liberal Democrat coalition government in early 2011 as an unpaidMinister of State for Trade and Investment.[15][16] In order to take up his ministerial position, he stepped down as group chairman of HSBC on 3 December 2010 and was replaced byDouglas Flint.[17] To enable him to be accountable to Parliament, he was created alife peer on 16 November 2010 asBaron Green of Hurstpierpoint, of Hurstpierpoint in the County of West Sussex,[18] and wasintroduced in theHouse of Lords on 22 November. He was Minister of State for Trade and Investment in both theDepartment for Business, Innovation and Skills and theForeign and Commonwealth Office from 11 January 2011 until 11 December 2013.
After Green's retirement from HSBC, the questions that had begun to be asked about the bank's behaviour under his leadership continued. On 23 July 2012, theUS Senate's Permanent Subcommittee on Investigations released a 335-page report setting out HSBC's compliance failures over a ten-year period. In the report, Senate investigators said the bank had bypassed the USA's sanctions against Iran, enabled money laundering by Mexican drug lords (chiefly for theSinaloa Cartel),[13] and had conducted business with companies with links to terrorism.[9] The report quoted emails copied to Green detailing such dubious transactions and alleged that the bank had continued to allow them to continue even after he and his colleagues had promised to act.[3][19] Green toldSky News that he had "no case to answer" over the money laundering scandal, saying: "As and when issues were drawn to our attention, as we were seeking to grapple with the issues, we took action. I think we must acknowledge there were some failures of implementation. HSBC has expressed its regret for that. I share that regret."[20]
Defending Green,Lord Oakeshott, a former Treasury spokesman for theLiberal Democrats, said: "Stephen Green was a thoughtful banker in holy orders. But if even he couldn't stop these scandals, banks like HSBC and Barclays aren't just too big to fail, they are clearly too big to control".[19]
The Senate report prompted shadow financial secretary to the Treasury,Chris Leslie, to write to Green asking him to "place on the record – at the earliest opportunity – an assurance that you took every appropriate step if and when you became aware of the issues raised by this report" and asking a number of specific questions.[21] Leslie was unconvinced by Green's reply, in which he had written: "With regards [sic] to the bank's efforts to address its AML (anti-money laundering) and OFAC (Office of Foreign Assets Control) compliance issues, HSBC has expressed its regret that there were failures of implementation in these areas, and I share that regret". Leslie maintained that Green's letter failed to:
address the detailed questions about what he knew and when about these very serious issues. As a British Minister, an adviser to George Osborne on banking and a member of the Cabinet committee on banking reform, he is accountable first and foremost to Parliament. He cannot and should not hide behind "continuing discussions between HSBC and the US authorities" as a reason for failing to answer questions.
Shortly afterwards, Green failed to attend the House of Lords to answer a Labour question about the affair. TheLeader of the House of Lords,Lord Strathclyde, defended Green, saying that his earlier employment with HSBC did not affect his ability to carry out his duties.[20]
In February 2015, there was further criticism of Green and his leadership of HSBC afterBBC Television broadcast aPanorama programme entitledThe Bank of Tax Cheats exposing the complicity ofHSBC's Swiss private bank, HSBC Private Banking Holdings (Suisse) SA, in helping more than 100,000 clients from over 200 countries evade tax worth hundreds of millions of pounds.[22] At the time of the alleged offences Green was the Swiss bank's chairman.[23] BBC presenter Richard Bilton confronted Green, who refused to discuss the issue saying only: "As a matter of principle I will not comment on the business of HSBC past or present". Chairwoman of thePublic Accounts Committee,Margaret Hodge MP, said: "Either he didn't know and he was asleep at the wheel, or he did know and he was therefore involved in dodgy tax practices. Either way he was the man in charge and I think he has got really important questions to answer".[22] A few days after thePanorama broadcast, Green resigned as chairman of the advisory council for banking industry body, The City UK,[24] saying that he did not want to damage the effectiveness of the organisation in promoting good governance and doing the right thing.
Some of his prior directorships included theBank of Bermuda Limited,HSBC Mexico, SA and the Hongkong and Shanghai Banking Corporation Limited. He was also chairman ofHSBC Private Banking Holdings (Suisse) SA andHSBC North America Holdings Inc., deputy chairman ofHSBC Trinkaus & Burkhardt AG and was a board member ofHSBC France. In 2005 he was appointed a trustee of theBritish Museum, a position from which he resigned before his appointment as Minister of State.[25] In 2014 he was appointed a trustee of theNatural History Museum by the Prime MinisterDavid Cameron for a period of four years, and was elected chair by the board of trustees from 1 April 2014.[26]
Green was shortlisted for theGrassroot Diplomat Initiative Award in 2015 where he remains in the directory of the Grassroot Diplomat Who's Who publication.[27]
Green is an ordained priest in theChurch of England,[28] having studiedtheology atManchester University's Northern Ordination course while inHong Kong,[29] and he is the author of the bookServing God? Serving Mammon?[30] He has since described the book as "out of print and out of date".[7] During his time as a senior banking executive, he was known to compose his sermons while travelling around the world on business.[2]
Green was awarded anhonorary doctor's degree from theSchool of Oriental and African Studies (SOAS),University of London in 2010.[31]
| Business positions | ||
|---|---|---|
| Preceded by | Group Chief Executive ofHSBC Group 2003–2006 | Succeeded by |
| Preceded by | Group Chairman ofHSBC Group 2006–2010 | Succeeded by |
| Orders of precedence in the United Kingdom | ||
| Preceded by | Gentlemen Baron Green of Hurstpierpoint | Followed by |
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