HSBC has announced that it is to cut 25,000 jobs. It is not a panic situation for teh global economy as this bank is one which has teh greatest number of countries in which it operates. It has so far managed to avoid UK government taxpayer support.
With the US government agreeing debt restructuring over ten years of an amount that it will borrow by raising its debt ceiling of its government borrowing by that amount. At the time of state intervention in the banking sector by buying shares previously, the offer of state support was made to HSBC and other banks.
The question to ask is if to maintain cvilian infrastructure in rural locations in other countries is a global private sector institution allowed to use funds gained from one states jurisdiction to subsidise its operations in that state under ultra vires.
If not then HSBC has no option but to go to each nation state individually and make its own job losses in each global institution accordingly. The alternative is for the world bank to regulate multinational financial institutions as well as aid statesbut that might be democratically unpalatable in many countries.
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