HSBC expects criminal charges for money-laundering
By The Los Angeles Times
Published: Monday, Nov. 5, 2012, 6:18 p.m.
The federal government is likely to file criminal charges related to money-laundering against HSBC Holdings, the international banking giant said in its third-quarter financial report.
London-based HSBC, Europe's largest bank, reported Monday that it set aside additional $800 million to cover its liability in the case, bringing the total so far to $1.5 billion. The potential penalties could be “significantly higher,” it said.
Banks have fallen under heightened scrutiny amid evidence they have been used to funnel funds to terrorists and to process dirty money for drug lords.
Previous money-laundering settlements involved Wachovia Corp. of Charlotte, now part of Wells Fargo & Co., and Britain's Standard Charter, both of which agreed to pay multimillion-dollar amounts.
HSBC's self-described liability of more than $1.5 billion dwarfs those civil cases, which did not include criminal charges.
“The size of the provision is a shock,” Simon Maughan, a financial industry strategist at Olivetree Securities Ltd. in London., told Bloomberg News. “There was a huge fuss made about Standard Chartered's fine, but this far exceeds that.”
HSBC is named after its founding unit, the 147-year-old Hongkong and Shanghai Banking Corp. It has more than 300 offices in the United States, according to the Federal Deposit Insurance Corp.
HSBC barreled into the United States as the housing boom took hold in 2003, paying more than $15 billion for subprime lender Household International Inc., the parent of the Household and Beneficial finance companies. After sustaining tens of billions of dollars in losses, it shut down the subprime unit entirely in 2009.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Kovacevic: Still waiting on Crosby, Malkin
- Rossi: Lack of together time showing for Penguins’ defense
- 3 ejected after Pirates, Brewers brawl
- Police fatally shoot man in Wilkinsburg after chase
- Washington County crash causes chemical spill into Chartiers Creek
- Fleury a bright spot among struggling Penguins in playoffs
- Draftees’ longevity key for NFL success
- LaBar: Did WWE referee know finish to Undertaker match?
- Attorney wants lesser term for woman in Greensburg torture death
- Garden Q&A: Firecracker vine OK for trellis?
- Starkey: Penguins’ arrogance astounding