HSBC May Have to Run Down Credit Card Business

FOXBusiness

HSBC Holdings (NYSE:HBC) will likely phase out its $33 billion U.S. credit-card business if it cannot find a buyer, the companys chief executive Stuart Gulliver told reporters on Monday.

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The move is part of the biggest European banks effort to slash costs and cut back in retail banking. HSBC said last month that it planned on cutting up to $3.5 billion in costs and cut back in retail banking.

Gulliver said he was optimistic about the U.S. economic recovery, but noted a card business in that nation did not make strategic sense, according to a report by Reuters. The business is still being reviewed, he said.