Page 36 - HSBC (D) Case Study

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.