Page 25 - HSBC (D) Case Study

Scandal broke out when Hervé Falciani, formerly an IT
expert at HSBC’s Swiss private bank, where almost $120

billion in investments was held, stole and leaked details
of 30,000 client accounts from 2005-07. The files showed

how the Swiss private bank helped the wealthy evade

taxes (see Timeline).

At the beginning of 2015 HSBC was caught in a political

storm when the U.K. Parliament's Treasury Committee

questioned HSBC Chairman Douglas Flint and Chief

Executive Stuart Gulliver about personal accountability

amid allegations that its Swiss private bank helped

wealthy clients, including as many as 1,000 Britons, evade

taxes.

Gulliver was personally dragged into the scandal when it

was reported that he himself had an account at the Swiss

private bank. Gulliver claimed that:

“he opened the account through a Panamanian
company to protect his privacy because other

executives at HSBC's Hong Kong offices were able to
see what colleagues were earning. He insisted he's

paid all his taxes and said the Panamanian structure

was closed. His salary and bonuses are now public.”

(16)

When questioned by the Treasury Committee over the

bank’s actions Gulliver commented that he could not

monitor the activities of every employee in the bank.