Just over a week after HSBC bank was hauled over the coals by a US Senate report for allowing the money laundering of shady drugs and terrorism deals to happen right under its very nose, there’ve been more revelations about the bank which will surely shock its customers worldwide. Not least the news that it’s made an £8bn pre-tax profit for the first six months of this year, an 11% hike compared to last year.
Europe’s biggest bank has admitted that - quote - ‘various regulators and competition and enforcement authorities around the world including the UK, the US, Canada, the EU, Switzerland and Asia’ are conducting investigations into its dealings. In fact a total of 6 different probes are on-going over allegations they also manipulated the LIBOR rate (the interbank lending rate) and the Euribor rate. There was always a feeling that it wasn’t just Barclays which was going to feel the heat over this saga.
CEO of HSBC, Stuart Gulliver says they’ve put aside around $2bn (£1.27bn) to cover UK mis-selling compensation and a further $700m (£446m) for any US fines following the money laundering accusations. And he’s also admitted they might need much more than that given the extraordinary circumstances, adding that there bank had "clearly lost its way" amid the scandals related to product mis-selling, alleged rate-rigging and money laundering. Quite.