Lord Myners: HSBC should move retail arm to Paris

Former City minister Lord Myners (pictured) has advised HSBC to move its UK retail arm to Paris as the regulatory threat to the lender grows.

Myners offered the advice as the Independent Commission on Banking (ICB) draws up plans to make ring-fence their retail banks from their investment banks with the aim of avoiding another financial crisis.

HSBC, which is one of the biggest investment banks in the world, is likely to feel the the impact of these measures more than others.

According to the Sunday Telegraph, Myners said in a debate organised by the Assocation of Corporate Treasurers: I've said HSBC would want to consider, or I suspect will consider, moving its holding company.

'If I was the director of HSBC, I would simply cease to do business in the UK through HSBC plc, which is the old Midland bank, and I would instead do it through CCF, their French bank, which can be passported into the UK, and thereby avoid all the extra capital requirements that Vickers is putting on me, and also avoid the UK bank levy.'