British banking giants have come under fire line from the US financial authorities. HSBC will pay a record $1.9bn to settle a money-laundering probe, with Standard Chartered getting a $327mn charge for violating US sanctions against Iran.Where exactly will the money ($2bn) go? To help America's health and education infrastructure? To helping feed, clothe and house the poor? To creating more and better jobs, etc...?
The fine against HSBC will include $1.25bn in forfeiture, as well as $655mn in civil penalties. In an attempt to cut costs and improve profitability, HSBC CEO Stuart Gulliver made the bank the matter for US probes and claims from UK clients. The lack of money-laundering controls at HSBC allowed terrorists and drug cartels access to the US financial system, according to Bloomberg.
The bank accepts responsibility for “past mistakes” and is “profoundly sorry for them,” Gulliver said.
Tuesday, December 11, 2012