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BUSINESS A25
Tuesday 23 February 2016
HSBC probed by US over hiring linked to Asian governments
People walk past a branch of HSBC bank in Hong Kong, Monday, Feb. 22, 2016. HSBC warned of ny said in a section on legal ing growth in China.
a “bumpier” global financial outlook thanks to China’s slowing economy, as it reported Monday and regulatory matters in “China’s slower economic
that profit dipped slightly last year. Europe’s biggest bank posted a net profit of $13.5 billion for its annual results. growth will undoubtedly
2015, down 1.2 percent from the year before. The bank also acknowl- contribute to a bumpier fi-
edged it had received nancial environment, but
(AP Photo/Vincent Yu) inquiries from the Depart- it is still expected to be the
ment of Justice over its largest contributor to glob-
KELVIN CHAN year, net profit was $13.5 utives at Chinese compa- banking relationships with al growth as its economy
DANICA KIRKA billion for 2015, down 1.2 nies, known as princelings, certain individuals and en- transitions to higher added
AP Business Writer percent and below ana- to give them an advan- tities associated with FIFA, value manufacturing and
HONG KONG (AP) — Lon- lysts’ forecasts. tage in winning deals. the world governing body services and becomes
don-based bank HSBC said In the report, the bank “HSBC has received vari- for soccer. It underscored more consumer driven,” he
Monday it is among a num- warned it is being investi- ous requests for information that it was not the only in- said.
ber of firms being investi- gated by the U.S. Securities and is cooperating with the stitution undergoing such The group has been steadi-
gated by U.S. authorities and Exchange Commission SEC’s investigation,” said scrutiny over whether it ly trimming back its global
over the hiring of people over the hiring of people the bank, adding it’s one permitted “the processing operations as part of a
connected to Asian gov- referred by or related to of “multiple financial institu- of suspicious or otherwise sweeping reorganization
ernments, raising the risk government officials or em- tions” being scrutinized. improper transactions.” It announced last June to
of more expensive legal is- ployees at state-owned “Based on the facts cur- said it was cooperating focus on Asia, where it ex-
sues. companies in Asia. The rently known, it is not prac- with the investigation. pects the region’s growing
Europe’s biggest bank an- regulator is reportedly scru- ticable at this time for HSBC Though HSBC warned of a affluence to drive profits.
nounced a $1.3 billion loss tinizing global investment to predict the resolution of challenging financial out- Asia accounted for 83.5
for the final quarter, com- banks to see if they vio- this matter, including the look, Chairman Douglas percent of HSBC’s pre-tax
pared with a $511 million lated bribery laws by hiring timing or any possible im- Flint said the results were profits last year.
profit in the same period relatives of well-connected pact on HSBC, which could “broadly satisfactory.” He It’s slashing thousands of
the previous year. For the officials or company exec- be significant,” the compa- said in a statement that jobs and selling off busi-
last year was marked by nesses in countries like Brazil
“seismic shifts in global while expanding in China,
economic conditions,” no- particularly the wealthy
tably sharp falls in prices for Pearl River Delta manufac-
oil and other commodities, turing region in the coun-
partly stemming from slow- try’s south. q
Verizon to buy fiber-optic firm for $1.8B
NEW YORK (AP) — Verizon spectrum and has the op- Verizon shares rose 24
says it will pay $1.8 billion
to buy the fiber-optic net- tion to buy the spectrum at cents to $51.10 in after-
work business of XO Com-
munications, in a deal that the end of 2018. noon trading.q
the wireless phone com-
pany said would improve
service for its customers.
XO Communications,
based in Herndon, Virginia,
owns and operators net-
works that its customers use
for Internet access, cloud
computing and other uses.
Billionaire investor Carl
Icahn is chairman and sole
shareholder of the com-
pany.
The deal is expected to
close in the first half of next
year.
New York-based Verizon
Communications Inc. says
it will also rent XO’s wireless
