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By Steve Slater
LONDON, Feb 24 (IFR) - HSBC has hired Matthew Westerman fromGoldman Sachs to become co-head of banking in its investmentbanking arm, part of several changes in the unit.
Westerman has been at Goldman Sachs for 16 years and wasmost recently chairman of its investment banking division inEurope, Middle East and Africa.
He will join HSBC in "the coming months" and work alongsideRobin Phillips, the other co-head of global banking, HSBC saidin a memo to staff on Wednesday seen by IFR. Goldman also sent amemo to staff announcing Westerman's departure.
HSBC said it was also enlarging the size of the globalbanking unit, by merging its capital financing unit into it andmoving a number of clients from its commercial banking (CMB)unit to the business.
Samir Assaf, head of global banking & markets (GBM), said inthe memo that the aim was to create a more cost-efficientstructure.
"You have heard me speak about intensifying our focus onmanaging costs," Assaf said in the memo. "By bringing capitalfinancing, banking and the former CMB clients together, we willbe able to reduce our spend by identifying cost savings andcreating further synergies."
He said changes across the investment banking industry hadleft GBM, which reported a rise in full-year profits and incomeon Monday, with an opportunity "to gain significant marketshare".
Assaf said another objective of the changes was to bring itsprimary products "under the same roof as relationship managers"to be more agile.
As a result of the changes, Spencer Lake, head of capitalfinancing, will become vice-chairman of GBM, where he will focuson strategic initiatives, such as leading work on theinternationalisation of China's renminbi, infrastructure andsustainable financing.
HSBC confirmed the contents of the memo and Assaf said hewas delighted Westerman was joining.
"It reflects the confidence people have in GBM's strategyand potential," he said in a statement to IFR.
Westerman was previously head of Goldman's investmentbanking division in Asia Pacific (excluding Japan) from 2012 to2015 and before that was global head of equity capital markets,based in London. He was named a partner in 2002.
Goldman said in its memo Westerman was a trusted advisor tomany clients and led many franchise-defining transactions. Itsaid he was also an important advisor and mentor to many peopleat the company. (Editing by Ian Edmondson)
HSBC Holdings (HSBA)