Four European Bank CEOs Pull Out of Saudi Conference -- 3rd Update
October 16 2018 - 12:59PM
Dow Jones News
By Margot Patrick and Jenny Strasburg
More banking executives pulled out of Saudi Arabia's Financial
Investment Initiative conference Tuesday, with the heads of HSBC
Holdings PLC, Credit Suisse Group AG and Standard Chartered PLC
canceling plans to attend next week's event.
This follows decisions this week by some of Wall Street's most
prominent executives not to attend, amid a backlash against the
kingdom over the disappearance of Saudi journalist Jamal Khashoggi.
Turkish officials say Mr. Khashoggi was killed by Saudi agents in
Istanbul earlier this month. Saudi Arabia has denied the
accusation.
The three bank chiefs pulled out Tuesday morning after
discussing it among themselves, people familiar with the matter
said. A fourth bank official, BNP Paribas SA Chairman Jean
Lemierre, later on Tuesday opted not to attend, as did London Stock
Exchange Group PLC CEO David Schwimmer.
Global banks have been courting the Saudi government and its
33-year old crown prince, Mohammed bin Salman, the public face of
the kingdom's effort to establish itself as a financial and
investing hub. Last year's inaugural conference, billed as a "Davos
in the Desert," was well attended by Western executives.
Skipping this year's conference could mean banks miss out on
potentially lucrative transactions involving the Saudi government
over the coming years. However, many of the banks with chief
executives canceling their appearances are still sending
delegations.
HSBC Chief Executive John Flint had been scheduled to speak and
the bank was a strategic partner for this year's conference. The
British bank part-owns a lender and has an investment-banking joint
venture in the country.
Credit Suisse CEO Tidjane Thiam was on the conference's advisory
board, while Standard Chartered CEO Bill Winters was slated as a
speaker.
Conference organizers declined to comment Monday on the
cancellations and indicated the event would go forward as planned.
They didn't immediately respond to a request for comment
Tuesday.
The latest withdrawals increase pressure on other executives to
clarify their plans.
As of Tuesday afternoon, Deutsche Bank AG executives were still
discussing whether CEO Christian Sewing would attend the Saudi
conference, according to people familiar with the matter. Mr.
Sewing isn't scheduled as a speaker, but had tentative plans to
represent the German bank in meetings with clients at the
conference, the people said.
French bank Société Générale SA was "monitoring closely the
situation" Tuesday for CEO Frédéric Oudéa's planned attendance, a
spokesman said.
JP Morgan Chase & Co. CEO James Dimon, BlackRock Inc. CEO
Laurence Fink and Blackstone Group chief Stephen Schwarzman are
among executives who have already decided they won't attend.
JP Morgan, HSBC and Citigroup Inc. hold the top rankings for
Saudi Arabia investment banking revenue so far in 2018, according
to Dealogic data. The banks have helped the kingdom and state
entities raise loans and bonds, among other business.
Write to Margot Patrick at margot.patrick@wsj.com and Jenny
Strasburg at jenny.strasburg@wsj.com
(END) Dow Jones Newswires
October 16, 2018 12:44 ET (16:44 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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