Wed, Feb. 25, 4:23 AM
- HSBC (NYSE:HSBC) chairman Douglas Flint and chief executive Stuart Gulliver will face a grilling by MPs on the U.K.'s Treasury Select Committee of lawmakers today over tax evasion at the bank's Swiss subsidiary, HSBC's underlying performance and whether it should be broken up.
- Adding to the pressure before the hearing is the newly released details of Gulliver's tax arrangements, who uses a Swiss bank account to hold his bonus payments.
Tue, Feb. 24, 2:32 AM
- HSBC (NYSE:HSBC) has set aside another $550M to cover potential fines for alleged manipulation of foreign exchange markets and warned it could face a $500M bill to compensate U.S. customers for debt protection products it offered before May 2012.
- The bank paid $611M to global regulators in November when it was one of six institutions fined over allegations of price fixing and manipulating benchmarks in the $5T-a-day forex market.
Tue, Feb. 24, 1:56 AM
- U.S. officials are probing at least 10 major banks for the possible rigging of precious-metals markets, even though European regulators shelved a similar investigation after finding no evidence of wrongdoing, WSJ reports.
- The DOJ is scrutinizing the price-setting process for gold, silver, platinum and palladium in London, while the Commodity Futures Trading Commission has opened a civil investigation.
- Banks under scrutiny: HSBC, BNS, BCS, CS, DB, GS, JPM, OTCPK:SCGLY, OTCPK:SGBLY, UBS
Mon, Feb. 23, 9:14 AM
Mon, Feb. 23, 4:30 AM
- HSBC (NYSE:HSBC) -4.8% premarket after reporting that profits fell 17% to $18.7B in 2014, down from $22.6B the year before and below the average analyst forecast of $21B.
- The bank, which faced a significant number of fines and settlements last year, also cut its target for RoE to "more than 10%" from a previous target of more than 12%.
- "We deeply regret and apologize for conduct and compliance failures...which were in contravention of our own policies," added HSBC, addressing the allegations about tax evasion at its Swiss operations.
- HSBC chief executive, Stuart Gulliver, has been recently dragged into the tax-evasion scandal after it was claimed that he sheltered millions of dollars in a Panamanian company via its Swiss private bank.
Wed, Feb. 18, 6:40 AM
- Geneva's public prosecutor office searched the offices of HSBC's (NYSE:HSBC) Swiss unit today, saying it had opened a criminal inquiry into allegations of aggravated money laundering.
- A spokesman for HSBC in Switzerland said the bank was cooperating with Swiss authorities.
- Previously: HSBC admits to failings at Swiss arm (Feb. 09 2015)
Tue, Feb. 10, 6:19 AM
- U.S. prosecutors have stepped up efforts to establish whether HSBC (NYSE:HSBC) helped Americans evade taxes after the bank admitted yesterday to helping customers dodge taxes and conceal millions of dollars of assets at its Swiss subsidiary.
- U.S. authorities are also probing whether HSBC manipulated currency rates, which could prompt the Department of Justice to revisit a 2012 deferred prosecution agreement with the bank.
- Previously: HSBC admits to failings at Swiss arm (Feb. 09 2015)
- HSBC -1.7% premarket
Mon, Feb. 9, 3:08 AM
- HSBC (NYSE:HSBC) has admitted to the failings of its Swiss subsidiary, which helped customers dodge taxes and conceal millions of dollars of assets, according to a huge cache of leaked bank files.
- HSBC said that its Swiss arm had not been fully integrated into the bank after its purchase in 1999, allowing "significantly lower" standards of compliance and due diligence to persist.
- "We acknowledge and are accountable for past compliance and control failures," HSBC declared on Sunday.
Tue, Feb. 3, 1:20 PM
- The EU last year put into place a new bank-resolution law which would force losses on bondholders - 8% of a failing bank's liabilities would have to be wiped out before a bailout could be discussed.
- Without the systemic support, S&P cuts ratings on Credit Suisse (CS +1.9%), HSBC (HSBC +1.5%), Barclays (BCS +6.2%), Lloyds (LYG +3.6%), RBS (RBS +3.6%), and Standard Chartered (OTCPK:SCBFF +2.4%).
- Among those on watch for a cut, says S&P, is Deutshce Bank (DB +3.5%).
Wed, Jan. 28, 11:40 AM
- Lloyds (LYG -1%) CEO Antonio Horta-Osorio has presided over a doubling in the stock's market value over the past three years, and a reduction in the government's stake in the lender, and he's now among the front-runners for the CEO slot at StanChart (OTCPK:SCBFF -5.3%), reports Bloomberg.
- Also being considered is HSBC's U.K. CEO Antonio Simoes.
- Standard Chartered is coming under pressure from large shareholders to replace current CEO Peter Sands amid poor recent results and a slide in the stock price.
- Maybe making it tough to poach Horta-Osorio: He "absolutely" committed to Lloyds for the duration of its three-year restructuring plan announced three months ago.
Dec. 10, 2014, 8:12 AM
- Stuart Scott joined HSBC in 2007, and was let go yesterday, reports the WSJ, amid investigations which so far have cost the bank $620M in fines.
- Scott was under particular scrutiny for allegations he leaked confidential client information to a major hedge fund in a deal that netted the fund and the bank large profits. Scott was also part f a group of senior traders which met under the auspices of the Bank of England to oversee the functioning of the forex market.
Dec. 8, 2014, 10:28 AM
- A combination of new regulations and near-zero interest rates has some banks - including JPMorgan (NYSE:JPM), Citigroup (NYSE:C), HSBC, Deutsche Bank (NYSE:DB), and Bank of America (NYSE:BAC) - privately telling larger clients to take their deposits elsewhere or face fees on accounts which have long been free.
- “Ultimately my balances aren’t as profitable for the banks, and that’s going to impact my business,” says an executive with a title insurance company, complaining of sleepless nights amid negotiations with his bankers.
- BNY Mellon (NYSE:BK) has begun charging institutional clients money to park money in euros, and State Street (NYSE:STT) says itwill soon begin doing so.
- Some bankers are advising large clients to break up large deposits across a number of lenders (including smaller banks not subject to the new regulations), and other corporations are going to find themselves needing to build more sophisticated (and riskier) portfolios likely including vehicles like short-term bond funds and uninsured money-market funds.
Nov. 28, 2014, 3:30 AM
- Argentina’s tax agency said it found thousands of undeclared bank accounts at HSBC’s (NYSE:HSBC) Swiss unit that helped Argentines avoid paying taxes.
- The claim is the latest hit to HSBC this month, having also faced a metals price fixing lawsuit, a fine for manipulating forex benchmarks and pleading guilty to assisting U.S. citizens evade taxes also at its Swiss unit.
Nov. 26, 2014, 6:32 PM
Nov. 26, 2014, 7:15 AM
- Units of Goldman Sachs (NYSE:GS), BASF (OTCQX:BASFY), HSBC (NYSE:HSBC) and Standard Bank (OTCPK:SGBLY) have been sued in the U.S. over conspiring since 2007 to rig the twice-daily platinum and palladium "fixings" and the prices of futures and options based on those fixings.
- The plaintiff, a Florida-based maker of jewelry and police badges named Modern Settings, is claiming that metals purchasers lost millions of dollars due to the scandal.
- Last month, the London Metal Exchange said it will take charge of platinum and palladium price fixing, and use a new electronic platform from Dec. 1.
- The Hong Kong Exchanges and Clearing unit said the platform would replace a benchmark system established in 1989, run by Goldman, BASF, HSBC and Standard.
Nov. 26, 2014, 1:54 AM
- The U.S. Justice Department is investigating whether an HSBC (NYSE:HSBC) employee leaked confidential client information to a major hedge fund.
- The alleged leak is believed to have taken place in March 2010, while the bank was advising Prudential on a huge acquisition and was working on a related multibillion-dollar currency transaction.
- The probe comes as HBSC pleads guilty to charges that its Swiss private banking unit helped Americans evade taxes. HSBC will pay $12.5M to settle those claims.
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