Page 170 - Bank Case Studies

2012 Dec: HSBC signs a five-year deferred prosecution agreement

with US authorities after admitting that it processed drug-

trafficking proceeds through Mexico and transmitted
funds from sanctioned countries including Iran and pays a

$1.9 b fine. The DPA puts it at risk of a criminal conviction

and potential loss of its crucial US banking licence if it
commits another crime in that period.

Earlier in the year HSBC raised its provision for mis-selling

payment protection insurance in the UK to $2.4bn.

2013 Oct: Belgian prosecutors order dawn raids on the Antwerp

homes of a number of diamond dealers in a tax evasion
investigation focusing on HSBC. The bank says it is

cooperating with the Belgian authorities. In November,

the Flemish newspaper De Tijd reported that of almost
3,000 secret Swiss accounts at HSBC on a list provided by

Mr. Falciani, 70 per cent were held by diamond dealers.

2013 Dec: Lord Green steps down as minister of state for trade and
investment.

2014 May: The European Commission charges HSBC, along with

JPMorgan and Crédit Agricole for allegedly participating in
a cartel to manipulate the Euribor interest rate

benchmark after the three banks hold out against a
settlement reached with other institutions. The case is

pending.

2014 Sep: HSBC agrees to pay $550m to settle US government
allegations that it mis-sold mortgage-backed securities in

the run-up to the financial crisis.

2014 Nov: HSBC pays US and UK regulators $618m when it is one of

six banks fined a total of $4.3bn for their involvement in a

foreign exchange rate-rigging scandal.