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Daily Digit: $1.5bln dent to HSBC

Monday, November 05, 2012 - 01:26

Nov.05 - UK based bank, HSBC has set aside an extra $800 million to add to the already earmarked $700 million for fines over anti-money laundering rules. It's one of a string of scandals to hit British banking. Joanne Nicholson reports

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$1.5bln is today's daily digit in Europe. It's the amount its biggest bank, HSBC may now have to pay in fines for breaching anti U.S money laundering rules. The London-based bank had already set aside $700 million after a U.S senate report flagged up the bank's lax controls in July. It now says it needs to find another $800mln. HSBC could also face criminal charges over the allegations it allowed clients to shift potentially illicit money from countries like Mexico and Iran. News of the charge comes after a week of similar stories involving other UK banks Justin Urquhart Stewart from Seven Investment Management says they're doing huge damage to British banking around the world. SOUNDBITE (English) Justin Urquhart Stewart, Seven Investment Management, saying "Other banks have been involved in this but it's the British banks that are getting all the bad headlines at the moment and that affects one of the key issues of British banking, which is brand - the brand that you can trust." Barclays - already fined over the LIBOR-rigging scandal - is currently fighting another penalty - this time for rigging electricity prices in California. And the UK's banking sector has had to set aside 16 billion dollars for mis-sold payment protection insurance. That - along with a $1.5 billion bill - contributed to a drop in HSBC's quarterly profits. It became the biggest faller on the FTSE 100.

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Daily Digit: $1.5bln dent to HSBC

Monday, November 05, 2012 - 01:26