Monday, July 30, 2012

HSBC ready to cough up $2 billion for US investigation, mis-selling




HSBC's boss told Reuters on Monday revelations of lax anti-money laundering controls had been "shameful and embarrassing" for Europe's biggest bank, and may force it to pay out well over $2 billion for those flaws and in compensation for UK mis-selling.

HSBC set aside $700 million to cover fines and other costs for an anti-money laundering scandal, after a US Senate report criticized it this month for letting clients shift funds from dangerous and secretive countries, notably Mexico.

The ultimate cost could be "significantly higher", the bank's Chief Executive Stuart Gulliver said.
HSBC's chief executive apologized on Monday for shameful and embarrassing mistakes made on anti-money laundering controls as the bank set aside $2 billion to cover the cost of US investigations and compensate UK customers for mis-selling….

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