HSBC has Agreed to Pay $101.5 Million to Resolve Fraud Charges

HSBC has Agreed to Pay $101.5 Million to Resolve Fraud Charges

HSBC Holdings has agreed to pay $101.5 million to resolve fraud charges with the US Department of Justice (DoJ).   The agreement to pay $101.5 million comprised of $63.1 million criminal penalty and $38.4 million in disgorgement and restitution to resolve charges in defrauding two bank clients through a multi-million dollar scheme commonly referred to as “front-running.”

“ HSBC to Pay $101.5 Million for Defrauding Clients “

On two separate occasions in 2010 and 2011, foreign exchange traders misused confidential information provided to them by HSBC clients to execute multi-billion dollar foreign exchange transactions involving the British Pound Sterling.  After executing confidentiality agreements with clients, the traders transacted in the Pound Sterling in their HSBC “proprietary” accounts, thereafter causing the large transactions to be executed in a manner designed to drive the price of the Pound Sterling in a direction that benefited HSBC, and disadvantaged clients.

In one incident, HSBC had made misrepresentations to one of the clients, Cairn Energy, so as to conceal its actions.  In total, HSBC admitted to making profits of approximately $38.4 million on the first transaction in March 2010, and approximately $8 million on the Cairn Energy transaction in December 2011.

Since 2011, HSBC has introduced numerous measures to enhance its Global Markets compliance programme and internal controls and agreed to cooperate fully with regulatory and law enforcement authorities.

Source: US Department of Justice, HSBC

 

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About HSBC

HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.

We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about213,000 shareholders in 132 countries and territories.

Visit: HSBC

 


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HSBC Concludes $1.9 Billion Fine & 5-Year Deferred Prosecution for Mexican Cartel Money Laundering

HSBC Concludes $1.9 Billion Fine & 5-Year Deferred Prosecution for Mexican Cartel Money Laundering

HSBC five-year deferred prosecution agreement in 2012 with the United States Department of Justice has finally come to a close.  The prosecution agreement in 2012 arose from HSBC helping Mexican drug cartels launder money and breaching international sanctions by doing business with Iran.  The prosecution was a $1.9 billion fine and the bank entered into a five-year deferred prosecution agreement in 2012.

“ HSBC Completes $1.9 billion fine and 5-year deferred prosecution case for Mexican Cartel Money Laundering and doing business with Iran ”

The bank has successfully completed the sanctions and have setup anti-money laundering controls.  As a result of the measures and controls in place, the United States Department of Justice decide to end the deferred prosecution and lift any further possibilities of penalties.

Source: Telegraph, Reuters

 

About HSBC

HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.

We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about213,000 shareholders in 132 countries and territories.

Visit: HSBC

 

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HSBC to Pay 300 Million Euros to Settle French Tax Dodging Probe in Switzerland

HSBC to Pay 300 Million Euros to Settle French Tax Dodging Probe in Switzerland

HSBC will pay 300 million euros ($352.5 million) to settle tax evasion investigation of French citizens through its HSBC Private Bank in Switzerland.

“HSBC Decides to Pay 300 Million Euros to Settle French Tax Dodging Probe via HSBC Private Bank in Switzerland”

The French financial prosecutor’s office said that French citizens will end proceedings against the bank provided it does make that payment. The settlement was the first of its kind under a new French legal framework.

Source: Reuters, Business Insider

 

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About HSBC

HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.

We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about213,000 shareholders in 132 countries and territories.

Visit: HSBC

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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Former HSBC FX Trader Convicted for $3.5 Billion Trading Fraud

Former HSBC FX Trader Convicted for $3.5 Billion Trading Fraud

Former HSBC FX trader, Mark Johnson had been convicted of fraud for $3.5 billion of currency trades in 2011.  He was found guilty of defrauding a client named Cairn Energy. Prosecutors said Johnson, FX trader at HSBC,  schemed to increase the price of British pounds before trading for Cairn to make millions of profit for HSBC at Cairn’s expense.

“Former HSBC FX Trader Convicted for $3.5 Billion Trading Fraud”

Mark Johnson had spent three days on the witness stands, in his own defense, and became the first person to be charged by the US Justice Department for FX-rigging offences.  This conviction was concluded after a three-year probe into foreign-exchange rigging practices in global financial institutions.

Source: Fortune, BBC News, International Business Times, CNBC

 

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About HSBC

HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.

We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about213,000 shareholders in 132 countries and territories.

Visit: HSBC

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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HSBC Pays $175 Million for FX Trading Practices

HSBC Pays $175 Million for FX Trading Practices

HSBC Holdings is paying $175 million to the U.S. Federal Reserve for its practices in its foreign exchange trading business.  The bank had failed to monitor chat rooms, where traders had communicated sensitive information.

“ The FED levied the fine for deficiencies in HSBC’s oversight of and internal controls over FX traders “

The HSBC traders were accused of sharing sensitive information of clients’ orders that would have given them the advantage to increase their trading profits, via their own positions.

Source: Reuters

About HSBC

HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.

We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about 213,000 shareholders in 132 countries and territories.

Visit: HSBC

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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HSBC Sells US Mortgages to Credit Suisse

HSBC Sells US Mortgages to Credit Suisse

HSBC has agreed to sell mortgages worth $1.6 billion to DLJ Mortgage Capital, a subsidiary of Credit Suisse. The loans are part of HSBC’s U.S Consumer and Mortgage lending portfolio. HSBC will receive $1.495 billion as part of the deal which will used to clear some of the debt.

“HSBC has agreed to sell mortgages worth $1.6 billion to DLJ Mortgage Capital, a subsidiary of Credit Suisse.”

~ Forbes

This sale will now bring the total outstanding loans for the U.S CML unit to below $5.7 billion. In the late 2008, the outstanding loans for the US unit was at a peak of $62 billion.  HSBC used to have a huge presence in the US mortgage industry prior to the economic downturn of 2008.

Related Reports: Forbes, Reuters

About HSBC

HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.

We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about 213,000 shareholders in 132 countries and territories.

Visit: HSBC

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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HSBC Faces Money Laundering Probe

HSBC Faces Money Laundering Probe

HSBC is being investigated over potential breaches of money laundering after there were several concerns raised last year. The bank has commented that it is the subject of an investigation by Financial Conduct Authority into its compliance with UK money laundering regulations and financial crime systems and controls requirements.

“HSBC is facing scrutiny over its measures to combat money laundering after it was slapped with a  £1.2bn fine in 2012 by US authorities.”

~ The Telegraph

HSBC is facing scrutiny over its measures to combat money laundering after it was slapped with a £1.2bn fine in 2012 by US authorities to settle allegations it laundered money for Mexican drug cartels.

Related Reports: The Telegraph, South China Morning Post

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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Boutique Bank Beats Well Known Banks to be Sole Advisor for Saudi Aramco

Boutique Bank Beats Well Known Banks to be Sole Advisor for Saudi Aramco

Moelis and Co, a boutique Wall Street Investment Bank has been chosen as the sole independent advisor for the IPO of Saudi Arabia’s state oil company, Saudi Aramco. Morgan Stanley, HSBC were banks that received a request for proposals for the world’s biggest initial public offering. It is believed that the firm will have a valuation of roughly $2 trillion.

“Moelis and Co, a boutique Wall Street Investment Bank has been chosen as the sole independent advisor for the IPO of Saudi Arabia’s state oil company, Saudi Aramco.”

~Reuters

Moelis had previously worked for Samsonite for its $1.3 billion IPO in 2011 and the plastic pipe Polypipe Group Plc on its £320 million IPO in 2014.

Related Reports: Financial Times, Reuters

 

About Moelis and Co 

Moelis & Company (NYSE:MC) is a leading global independent investment bank that provides innovative, unconflicted strategic advice to a diverse client base. We assist our clients in achieving their strategic goals by offering comprehensive, globally integrated financial advisory services across all major industry sectors. Our dynamic advisory practice supports clients through all phases of the business cycle through expert capabilities in M&A, Recapitalization & Restructuring, Capital Markets and Financial Institution Advisory. We serve our clients with about 650 employees based in 17 offices in North and South America, Europe, the Middle East, Asia and Australia.

Visit: Moelis and Co

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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UK Banks Close Down 1000 Branches

UK Banks Close Down 1000 Branches

More than 1000 bank branches have closed down over the past 2 years as more customers have turned to mobile banking. HSBC has shut most outlets since 2015 reducing almost 30% of its network by closing down 321 branches.

“HSBC has shut most outlets since 2015 reducing almost 30% of its network by closing down 321 branches. “

~ Financial Times

Royal Bank of Scotland and Lloyds Banking Group shut 191 & 180 branches respectively. Banks have been cutting costs at a time when profits are being squeezed by record low interest rates. HSBC has seen the number of branch visits drop by 40% in the past five years and it intends to grow its mobile and online banking.

Related Reports: Financial Times, BBC

 

About HSBC

HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.

We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about 213,000 shareholders in 132 countries and territories.

Visit: HSBC

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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EU Commission Fines Credit Agricole, HSBC and JP Morgan Chase

EU Commission Fines Credit Agricole, HSBC and JP Morgan Chase

The EU Commission has fined Credit Agricole, HSBC and JP Morgan Chase a total of 485 million Euros ($520 million) for their role in fixing the price of financial benchmarks linked to the Euro. They were part of a cartel between September 2005 & May 2008 to disrupt the Euribor benchmark interest rate used to reflect the cost of interbank lending

“The EU Commission has fined Credit Agricole, HSBC and JP Morgan Chase a total of 485 million Euros ($520 million) for their role in fixing the price of financial benchmarks linked to the Euro.”

~ Reuters

Credit Agricole was fined 114.7 million euros, HSBC 33.6 million euros and JPMorgan Chase 337.2 million euros. Deutsche Bank, RBS and Societe Generale admitted guilty in December 2013. Barclays avoided a fine because it alerted the Commission.

Related Reports: Reuters, CNBC

 

About EU Commission

The Commission’s main roles are to:

  • propose legislation which is then adopted by the co-legislators, the European Parliament and the Council of Ministers
  • enforce European law (where necessary with the help of the Court of Justice of the EU)
  • set a objectives and priorities for action, outlined yearly in the Commission Work Programme and work towards delivering them
  • manage and implement EU policies and the budget
  • represent the Union outside Europe (negotiating trade agreements between the EU and other countries, for example.).

Visit: EU Commission 


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