Report suggests HSBC struggled to clean up its act

HSBC HQ London 2

HSBC, smarting from a $1.9bn fine for providing banking to money launderers and sanctions-dodgers, promised U.S. officials it would clean up its act.

Bloomberg News reports that within a year, its reform efforts met resistance from leaders of HSBC’s U.S. investment-banking unit - some of whom mounted a campaign of bullying, footdragging and discrediting against in-house watchdogs, according to previously unreported details from a report by the bank’s court-appointed monitor.

HSBC agreed to submit to the monitor’s oversight in late 2012, as part of a pact with the U.S. Justice Department that required it to bolster its in-house controls. Armed with that directive, HSBC compliance officers singled out a half-dozen clients whose activities could put the bank at risk - including a Saudi bank that had been linked to September 11, 2001, hijackers -- and advised the U.S. investment-banking division to consider dropping those relationships.

There was no indication that the U.S. managers jumped to investigate. 

To access the complete Bloomberg News article hit the link below:

Sealed HSBC Report Shows U.S. Managers Battling Cleanup Squad

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