HSBC in settlement negotiations with US regulators: report
25 August 2012
HSBC is reportedly in settlement negotiations with US regulators over allegations the British banking heavyweight afforded sanctioned countries, drug cartels and terrorists, access to the US financial system, according to a Fox Business report.
The London-based lender had in July set aside $700 million to pay for potential US fines, the provision could still be revised upwards the report said.
HSBC and the Manhattan District Attorney had sought the wrapping up of settlement talks as early as September, the negotiations, however were slowed by a New York regulator's accusation of money laundering by the UK's Standard Chartered, according to Bloomberg News, the report said.
Bloomberg reported that a $700 million settlement would mark the largest ever US settlement over such charges.
HSBC had been accused last month of turning a blind eye to money laundering by Mexican drug cartel members, sanctioned countries like Iran and Sudan and even apparent terrorists.
Shares of HSBC slipped 1.22 per cent to $43.73 Friday morning, cutting their 2012 rally to 14.8 per cent.