HSBC Puts aside 700 million dollars to cover possible fines

HSBC has put aside 700 million dollars to cover possible fines, the Financial Times reports on its front page. It has yet to be fined and its CEO Stuart Gulliver believes it could even be more. This is in addition to the fact that it has to pay 1.3 billion dollars  of charges related to compensating customers who were mis-sold payment protection insurance products and shoddy derivatives in the UK. In a statement Gulliver said while “we lost our way…we have changed”, but no one believes him.

Some the money will come from clawing back bonuses given to such executives as Michael Geoghegan, who was CEO of HSBC during the period it was investigated. Also Sandy Flockhart, who headed the Mexican business at the time are named. But this is a drop in the bucket, especially if they end up in prison if a real criminal investigation were ever carried out. Lord Green(back), or is it kickback,  has not be mentioned and continues to try to keep a low profile.

This entry was posted in Glass Steagall and tagged , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s