Chicago Is “Overbanked” Says HSBC

HSBC Bank based out of New York is expanding into new retail banking markets adding offices in D.C., San Francisco, and L.A. but will likely pass over Chicago because it’s “heavily overbanked,” Brendan McDonagh, chief executive of HSBC North America told the Tribune. McDonagh used Washington Mutual as an example. The Tribune reported: “Washington Mutual mounted an aggressive branch expansion in the Chicago market starting in 2003, peaking at more than 170. Then, over the years it retrenched to about 120, and even more closed as the institution was integrated into its new owner JPMorgan Chase…”. McDonagh says HSBC will move slowly and watch how the WaMu to Chase transition plays out, as well as Bank of America’s acquisition of LaSalle Bank. [Tribune]