Interesting turn of events in today’s Financial Times regarding HSBC. It appears that Eric Knight, a 1% shareholder in HSBC, is stirring up a fuss about how HSBC has been behaving. His goal is to stir the pot and create strategy and management change at the highest levels of the bank.

Mr. Knight, the Chief Investment Officer & Chief Executive Officer of Knight Vinke Asset Management, New York and Monaco, has written to the HSBC board “requesting that it undertake a fundamental review of the group’s strategy in consultation with shareholders.”

You would think that if Mr. Knight was aware of the ridiculous position of HSBC in the UK to enforce an IVA hurdle rate policy that prevents people from repaying their debt and encourages them to go bankrupt, that he would wonder why the bank does not want to be repaid.

Hopefully as part of Eric Knight’s face-to-face discussions with the board he can ask why HSBC UK has felt so bold or above the law of the land that it has elected to completely disregard the British Banking Code by intentionally not treating consumers fairly and reasonably. I guess if there is a silver lining in this situation it is that TIX has acknowledged the existence of the hurdle rate in correspondence to Insolvency Practitioners.

As long as this HSBC policy remains in existence, Mr. Knight should know that not only is HSBC UK telling people that want to repay, don’t, but also that their flagrant disregard for the Banking Code puts them at risk of a £400 case fee per complaint to the Financial Ombudsman.

It would be a good idea also for someone to tap Simon Robertson on the shoulder and let him know what is really happening in the UK. Simon Robertson is serving as the senior executive independent director of HSBC. Mr. Robertson is a former banker with Goldman Sachs and currently chairman of Rolls-Royce.

On the HSBC board as well is Rona Fairhead, the chief executive of the Financial Times. Certainly Fairhead can pass a message to the other board members. I’d suggest something like “What the f**k are we doing in the UK. Makes no sense. Huge exposure. - Fairhead”

Apparently Mr. Knight also has the ear of the “well-endowed” California state pension fund, Calpers and together they might be able to get serious attention from the board. Of course this only proves that old adage, “Money talks, BS walks”. And guys do, please ask the big cheese, Stephen Green, why the hell he allows HSBC UK to actually turn consumers away that want to repay their debt in an Individual Voluntary Arrangement (IVA).

Hell, if that’s the official HSBC policy they are missing a trick, let’s at least get HSBC to sponsor busses to drive the consumers to the bankruptcy court. Think of the marketing potential with their big HSBC banners on the side of the bus. Of course the slogan might be “The last bank you’ll ever want.”