HSBC CEO Michael Roberts Talks H-1B Visa Applications

Summary

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Bloomberg Talks: HSBC CEO Michael Roberts Talks H-1B Visa Applications

Date: September 22, 2025
Host: Bloomberg
Guest: Michael Roberts, CEO, HSBC USA

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Episode Overview

This episode features an in-depth conversation with Michael Roberts, CEO of HSBC USA, on the bank's ongoing transformation, the global banking landscape, strategic focus on Asia and the Middle East, the recent H-1B visa policy changes, and the future of financial innovation. Roberts discusses HSBC's restructuring achievements, thoughts on global capital flows, challenges in private credit, and implications of geopolitical shifts for banks and their staff.

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Key Discussion Points & Insights

1. HSBC’s Restructuring & Strategic Focus

• Restructuring Achievements (00:38–02:15):

  • HSBC has recently undergone significant organizational changes, reorganizing the business into four divisions and focusing on efficiency.
  • Transformation is described as historic for HSBC, primarily aiming to simplify operations and respond quickly to an evolving environment.
  • "It's been less than a year and I think no one would argue that we probably have done more transformation, more change at HSBC potentially in its history." — Michael Roberts [00:42]
  • Year two of restructuring focuses on simplification, better bank operations, and not just cost efficiencies but also operational agility and responsiveness.
  • HSBC's share price is at a 22-year high, signaling market approval of these changes.

• Divestitures & Global Focus (02:15–04:36):

  • HSBC has exited several business lines, notably scaling back from the U.S. except for debt markets, and solidifying its leadership in Asia and the Middle East.
  • Significant capital flows and value are seen in cross-border business between these two regions, which are regarded as future growth engines.

2. Shifting Global Capital Flows & The Role of Asia and Middle East

• Debate on Regional Focus (04:12–05:10):
  • Despite past volatility in Asian markets (e.g., COVID), Roberts stresses “enormous wealth creation” in Asia and notes the growing significance of Hong Kong and capital exchanges with the Middle East.
  • U.S. and European companies are focusing their expansion in Asia and the Middle East due to sustained growth and robust capital flows.
  • "The amount of money going from the Middle east into Asia and vice versa… is a significant and I think permanent trend." — Michael Roberts [04:51]

3. H-1B Visa Changes and Staffing Impacts

• Policy Changes & Implications (05:10–06:28):
  • The recent U.S. H-1B visa policy change (imposing a $100,000 fee per visa) mainly affects tech but also touches HSBC’s U.S. operations (approximately 6,000 employees).
  • An initial lack of policy clarity caused organizational confusion, but since it is now prospective, the impact is manageable for HSBC, though more challenging for tech and larger finance firms.
  • "I think for all companies, you know, to pay an extra $100,000 on top of everything else, it is going to change the way we look at staffing." — Michael Roberts [06:09]

4. De-dollarization and Geopolitical Shifts

• Global Order & Reserve Currencies (06:28–08:15):
  • The relationship between the Middle East and Asia is being shaped by U.S. policies and talk of de-dollarization ("concern in the United States" and among investors globally).
  • Roberts sees no immediate alternative to the dollar as the reserve currency, and asserts any transition would be evolutionary rather than abrupt.
  • "If the U.S. Dollar is not the reserve currency, what is? It's not the renminbi, it's not the euro. The actual relative change between currencies… has not changed for the last 20 or 30 years." — Michael Roberts [07:23]

5. Innovation & Private Markets

• Financial Innovation Dynamics (08:15–10:02):

  • U.S. capital markets continue leading financial innovation, but Asia and the Middle East are quickly adopting and localizing trends, including in technology and structured products.
  • Growing U.S. investment and advancing technology into Asia are shaping these regions as hotbeds of new financial and industrial innovations.
  • "It's just not American innovation anymore." — Michael Roberts [09:19]

• HSBC’s Private Credit Strategy (10:02–10:35):

  • HSBC is consolidating its private credit activities to debottleneck growth and adapt to new models of financing, which don’t fit traditional bank structures.

• Systemic Risk in Private Credit (10:32–10:49):

  • Roberts acknowledges systemic risks in private credit and shares that HSBC closely monitors leverage and triggers, both internally and with its board.

6. Staff Morale & Internal Change Management

• Morale Amid Restructuring (10:49–11:53):
  • Maintaining morale was a top priority during restructuring; Roberts feels the bank is now moving from organizational changes to a focus on enablement, digitization, and AI.
  • "We're doing, I think, some very interesting things around AI, doing very interesting digitization that will make their jobs easier but also plays through right to the clients." — Michael Roberts [11:38]

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Memorable Quotes & Timestamps

• "It's been less than a year and I think no one would argue that we probably have done more transformation, more change at HSBC potentially in its history." — Michael Roberts [00:42]
• "The amount of money going from the Middle East into Asia and vice versa... is a significant and I think permanent trend." — Michael Roberts [04:51]
• "I think for all companies, you know, to pay an extra $100,000 on top of everything else, it is going to change the way we look at staffing." — Michael Roberts [06:09]
• "If the U.S. Dollar is not the reserve currency, what is? It's not the renminbi, it's not the euro. The actual relative change between currencies… has not changed for the last 20 or 30 years." — Michael Roberts [07:23]
• "It's just not American innovation anymore." — Michael Roberts [09:19]
• "We're doing, I think, some very interesting things around AI, doing very interesting digitization that will make their jobs easier but also plays through right to the clients." — Michael Roberts [11:38]

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Important Segment Timestamps

• HSBC Transformation Overview: [00:38–02:15]
• Asia & Middle East Focus: [02:15–04:36]
• H-1B Visa Policy Reaction: [05:10–06:28]
• De-dollarization Discussion: [06:28–08:15]
• Innovation & Private Markets: [08:15–10:49]
• Morale & Digital Transformation: [10:49–11:53]

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Tone & Speaker Style

Michael Roberts speaks candidly, blending pride in HSBC's progress with realism about ongoing challenges. He projects confidence about the bank’s strategic pivot but acknowledges uncertainty in global economics and policy, especially around de-dollarization and regulatory changes like the H-1B visa policy. The tone is analytical and direct, with a willingness to address both the opportunities and risks facing HSBC and global banking.

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This summary provides comprehensive insight into the episode’s main topics, key perspectives, and quotable moments, offering listeners and non-listeners alike a clear and structured understanding of the discussion.

Transcript

[A]

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[B]

The stocks had a great run. You've reorganized the business into four divisions. The market broadly has been on board so far. But is it. But does the tough bit now come? You've got to deal with the expenses, you've got to figure out exactly what the wealth division and how it's going to function to become this kind of global leader.

[C]

Yeah, no, it's a great question. A lot has been done. In fact I think we're very proud about the speed, about the scope of what we've been able to achieve in really a very short time. It's been less than a year and I think no one would argue that we probably have done more transformation, more change at HSBC potentially in its history. And so we're very, very proud of what we've achieved. I would love to say the easy things have always been done. There's always tougher things to do in particular in a ever changing environment. But we have done it quite a lot in particular around the organizational aspects of the change.

[B]

So what does year two bring?

[C]

Year two, I think in particular for my business brings much more focus on simplification, much more focus on really just efficiencies and that by mean, not just cost efficiencies, but just being a better bank, being able to respond quicker, to be more agile. All the things that really takes a long time.

[B]

Do you think some of that's already in the price in terms of the share price performance thus far?

[C]

I don't know. I mean I think a lot of it is certainly in there. I think you mentioned the cost. You know, as George has said many times, we will achieve the cost savings that we have set out to achieve. We're very confident as a management team we'll do that. And so that's fully in, in train right now. But clearly, you know, we had to respond to the environment, clearly to respond to all of the policy changes that are coming out from various places. So, so yes, I think we have done a lot, I think we will do more to do. I think it will be focused on really making the bank just a better bank operating more efficiently. I think probably the stock market understands it. In fact, it's a 22 year high is what it is. So it's an extraordinary, I think positive response from the market, but we clearly will always have more to do.

[D]

HSBC has exited a series of businesses lately to focus in on that kind of restructuring that you've just outlined and the cost efficiencies, as the youth would say, there might be a little bit of FOMO there. Do you think you're missing out on this big moment for Europe, this big moment for the UK as people look to diversify away from the States?

[C]

No, and I think you're referring to what the investment bank, the changes there. Because we have actually had a lot more disposals of various types. Not really, no. And I think the reason being is that we were never a bulge bracket investment bank. And that is something to everybody understand. We were a good investment bank in particular, where we have scale and relevance. Asia in the Middle east being those regions. And if you look at how we really perform and what our value added, it is really the cross border nature of our business and it is really in regions which we have an undeniable leadership position. Asia, the Middle east being those two regions. And thirdly, those are the regions for the future. Those are the regions that will grow. Think about 10 years from now, it's not going to be the same. And you know, I grew up investment banking. I understand exactly what Everybody's talking about. 60% of the fees are in the United States. And we are in the United States in our debt business, by the way, we've just reduced our M and A in equity business there. So we can still utilize the value of the capital markets which are the largest capital markets in the world. Obviously very important to be there. So we have a lot of deals that go to the US capital markets. That's great. But the future is really Asia and the Middle East.

[D]

So critics of that argument would suggest that the experience of five years ago during COVID when Asian markets were largely closed and a lot of the investors that were very bullish on Asia kind of learned their lesson and really pulled out from that kind of exposure. It's taken a while to even dip a toe back in. Why? Not necessarily in Covid, but in another circumstance, should people increase their exposure to a region that has historically not always been the most sure bet?

[C]

Because I think that's an enormous amount of wealth creation occurring right now in Asia, whether it be India or China. I think Hong Kong will become even a more important capital markets or center for capital markets around the world. I think that you see a huge amount of capital and trade Flows going between the Middle east and Asia. You have two regions that have an enormous amount of capital and they're exchanging capital back and forth.

[D]

But as any of it coming from the States or from Europe, in much less.

[C]

Well, still there always be. Yeah. I mean, if you look at where American companies are expanding, they're expanding those two regions. You look at where European companies are expanding, they're not expanding in Europe. I think the US Is largely done. They're expanding in those two regions. The interesting thing, however, is the amount of money going from the Middle east into Asia and vice versa. I think we have underestimated. That is a significant and I think permanent trend, and that's where we're there is to capture those flows as you have a reordering of the world's capital flows.

[E]

Michael, I want to talk about staffing. You talked about some of the headwinds floating around the world. Diplomatically put, many of them come from the White House. We have this change on the H1B visa. How much does that affect you? Because we know it affects tech heavily, so affects finance.

[C]

It does, you know, our operations. The United states are about 6,000 people. So relatively it's much less than if you're Microsoft or Google or some of the big tech companies or some of our American competitors. We had a flurry of activity this weekend like everyone else. I think it was unfortunate because the initial policy was unclear as to whether it was retroactive or prospective. They've now clarified that it is prospective. So that makes it much easier. I think it was going to be very disconcerting for a lot of people, in particular those holders of those visas who were traveling abroad.

[E]

But are you having, are you instructing staff to stay put? Do you think in the longer term you'll have more staff based, say in Asia or in Europe?

[C]

You know, again, we don't have a huge amount of the H1B visa holders. Yes. I think for all companies, you know, to pay an extra $100,000 on top of everything else, it is going to change the way we look at staffing. I think it for us, it's. It's manageable. I think for maybe other financial services companies. Similarly, I think for tech companies, that is a much bigger issue.

[B]

Come back to this question of the relationship between the Middle east and Asia and the changing kind of nature of global Trade was just three weeks in D.C. talks about de dollarization, this kind of process that is unfolding, this concern that there is exists in the United States about that.

[D]

Hmm.

[B]

Do you think that. Do you think that relationship is, is enduring? Do you think it's been created to a certain extent by the Trump administration? Do you. Are we seeing a reordering in bigger. In bigger. In sort of in, in the sort of tectonic plates of the world as a result of what is happening out of D.C. and forcing other people together?

[C]

Yeah, look, it's a very good question. The answer is I don't know because I think the policy changes quite a lot. Yeah, I think clearly if you're not going to have the dollar as the reserve currency that forces a major reordering of the world's economic structure as we know today. I think there is concern, I've talked to many investors, those in Asia and elsewhere, who are quite concerned as to what this means. There is no alternative. That is the reality. There will not be an alternative for many, many years. And so tomorrow, if the US Dollar is not the reserve currency, what is not? It's not the renminbi, it's not the euro. I mean the actual relative change between currencies, reserve currencies has not changed for the last 20 or 30 years. In order to have a significant change, I think it takes a long time to do so. If, however, there is a major policy change, there is, for instance, you know, some discussion of taxing holder, foreign holders of U.S. treasuries as an example. That would send a signal that yes, I think you'll have a evolutionary change just because of practical reality. You can't do it quickly but that would introduce a significant amount of uncertainty in the world's economic order.

[D]

You talk about Asia and the Middle east becoming to follow on guys question, this kind of new sphere of growth, can it still hold the level of innovation, financial innovation that you still see from the States? I'll give you an example. In the private markets, for example, yes, they're expanding. But the driver of that financial market innovation, things like democratizing for one case, in terms of getting access to private markets, in terms of the IPOs, in terms of some of the structured products that are out there, is still driven by the large scale American players. Are you still seeing some of that innovation being done more organically from the Middle east or Asia? Or is this about adopting what starts in the States?

[C]

Yeah, look, I think clearly from the financial perspective, the US Capital market is still the dominant capital markets. A lot of the financial innovation comes from the US Having been there for, for most of my career, so very well aware of that. However, I think you'll see one, a very quick adoption of many of those type of changes into both the Middle east and in particular in Asia. I think it's not only, by the way, financial innovation. I think it's also industrial innovation, technology, which is coming out of places like China fast and furious. I mean, I was also in Silicon Valley the week before last. I was in Israel last week. I will go to China. And just to see all of that innovation is pretty extraordinary that's going on and it's just not American innovation anymore. So I think that's one thing everyone should understand. Financially, yes, you certainly benefit in the United States by having the largest, most liquid financial markets and you have some of the largest banks in the world. So that's very helpful as well. But I don't, I don't think that will be confined to the US And I think more and more you'll see US players focusing on places like Asia. We see a huge amount of that. The inflow of US capital into Asia. They will bring technology with their capitalism.

[D]

What's HSBC doing in the private markets? Are you growing as fast as maybe some of your peers?

[C]

Yeah, we are, yeah. What look like part of our restructuring is to put all of our private credit activities in one place. It was not in one place before. So we're doing that as we speak. And that gets to your question about what are the things we're going to be doing going forward. It's what I call debottlenecking. A lot of those issues every bank has. This is a problem, by the way, is how do you respond to private credit, which is a new type of financing, which is. Doesn't really necessarily fit with the conventional way banks have been structured.

[D]

Is there systemic risk in private credit?

[C]

We looked at it very closely. In fact, we've had lots of discussion internally and even with our board, you know, there will clearly be always systemic risk. The question is how much leverage there is. You know, what would be the trigger for that? Systemic risk is something that we look at very quickly, are very closely.

[E]

Michael Guy started by asking you about the restructuring rear end.

[C]

I figured he was morale. I look Morales fine. I mean, no one likes to go through restructuring. And the reason we've moved as quickly as we have, which I must say again is as quick as we could possibly do it is very, very sensitive to morale issues, very sensitive to being distracted. That is very distracting. I think we're in a position now to say that first phase, that organizational change phase is coming to an end. And that's probably the most important thing. Not that we don't have more to do is Guy asked before. We will continue to, I think, improve the place, make it easier for our bankers and our traders and our salespeople. That's what we're going to focus on going forward. That's rewiring and re plumbing. That by its very nature is not quick. And I just told a group the other day, bear with us, we know what we're doing, but it will take a while. But we're doing, I think, some very interesting things around AI doing very interesting digitization that will make their jobs easier but also plays through right to the clients. That is really where we see a lot of value going forward.

[F]

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