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Breakingviews: Fine shows HSBC too big to indict

Tuesday, Dec 11, 2012 - 04:23

Dec. 11 - HSBC's $1.9bln fine is small beer for the bank. Regulators reportedly wanted to indict the UK lender, but backed down on systemic risk fears. Finance is 'far from fixed', says Reuters Breakingviews.

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So is -- HSBC too big to indict its and it finds once and Ericsson now -- very much a major cost of doing business especially a reputation no cost let's talk about this. With Reuters outbreak -- European and it's a -- you know song. I I guess the comment on this bank because despite will be brought down if it was indicted tried and that's what site. This is obviously what happened in the US where those -- a lot of fears that an indictment of the bank or even the bank. Pleading guilty to criminal charges would mean basically a death sentence. So yes the question is are some banks and big banks too too big to induct. Because I think Graham would mean 300 range of business from failed to indict because I mean failure because that would unfriendly and that's the interesting thing about it is that if it did. If you have accepted or rule pleaded guilty to two criminal charges it would have meant the -- convenient bank -- you're talking to major financial world financial institution. That's the reason why they get away with a fine but it's basically a slap on the wrist but why not just doubled the fun. I don't find them -- billion dollars. I'm not indict him a stronger he was thrown in the heart of the discussions that went on between. It has been TM the the protection does the US for second. Prosecutors but I think the amount is one thing he's just 8% of the you know pretax profit in the bank. Soviet even go to pizza rectify those who like to -- in the media it's not that much compared to an anticipation that attitude that he has. Wedge to. Two. Over audits governance its internal process and procedures. Of course scoring with two and never. And do it again which she's than he she can expect allegations are but you know laundering money and. By the we're profoundly sorry for. For some across mistakes. Which service are we said again. The HSBC's today as fundamentally different from the woman made those mistakes that Stewart -- of them see and I'm. By the bank is non compliance allegations of noncompliance. And that's with the agreed. Set to win the fine between know that the criminal. Charges -- hanging movement yeah threat was hanging over the host this. This of course is it becomes just a few days off essential. Fine. It's it's the biggest story we we -- know. Who is next we wonder what other stories are gonna come out on the back of this it's a reputation will risk stories for the bank. Aaron indeed for the sector once again. Yup it's not a repetition and it's of course reputation on its heels of the that would of the fear that. Major investors would have to pull out of the banks and pension -- commitment strict rules but the banks might lose their license to operate in the given territory if you took the US. And he's not the smallest territories. It is if you operate and -- yet those are real threats that are hanging over the banks and that's the reason -- law. The incentive to on the other hand. Of course the threats -- of the consequences. -- that new program has been made of lost for five years -- how how to have to do with those. Too big to fail banks. And winding them proves to me to be proves to present a nightmare. You know and -- it's thought about it and making progress -- We've seen recently -- conversations between point Tucker and the US regulators -- cross border cooperation is just beginning. And you wonder what they've been three years. All right get many thanks to -- yet camp song. Breaking news European edits are that's it for me ask you wanna watch our US show of course that comes on. So 1730. GMT trophy the Easton. I just a moment I'm gonna talk with -- he sing at the CEO of Thyssen -- pennies told about with him that's at 1029 GMT. I'm -- problems is --

Breakingviews: Fine shows HSBC too big to indict

Tuesday, Dec 11, 2012 - 04:23

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