HSBC allowed fraudsters to transfer millions of dollars around the world even after it had learned of their scam, leaked secret files show.Britain's biggest bank moved the money through its US business to HSBC accounts in Hong Kong in 2013 and 2014.Its role in the $ 80m (£62m) fraud is detailed in a leak of documents - banks' "suspicious activity reports" - that have been called the FinCEN Files.HSBC says it has always met its legal duties on reporting such activity.The files show the investment scam, known as a Ponzi scheme, started soon after the bank was fined $ 1.9bn (£1.4bn) in the US over money laundering. It had promised to clamp down on these sorts of practices.Lawyers for duped investors say the bank should have acted sooner to close the fraudste
HSBC saw its pre-tax profit plummet by 65% in the first half of the year as the UK's largest bank was forced to hike funds to cover bad loans due to the coronavirus.The lender reported profits of $ 4.3bn (£3.2bn) in the half year to 30 June, down from $ 12.4bn (£9.5bn) for the same period in 2019. HSBC's results reflected the trend of lenders globally increasing their financial buffers to absorb loan losses as companies reel from the impact of the COVID-19 crisis. Image: Unrest in Hong Kong has added to the challenges of the Asia-focused bank In response to the coronavirus pandemic the bank's provision for bad debts in the first-half soared to $ 6.9bn (£5.3bn), compared to $ 1bn (£760m) for the same period a year earlier.It had s
By Anirban NagIndia’s consumers can’t be counted upon to spur economic growth through spending as they did before, but their savings can help fund an increase in government borrowings, according to HSBC Holdings Plc. Rising savings during the nationwide lockdown imposed on March 25 will also help in curtailing India’s current account deficit as the need to raise capital abroad diminishes, economists led by Pranjul Bhandari wrote in a report to clients. Before the pandemic arrived, India’s gross savings rate had dipped to a more than decade-low of 30.1% in 2019, down from 37.8% in 2008, as companies, government and the consumers splurged. “We may actually find financial savings rise through the Covid-19 episode,” Bhandari wrote along with Aayushi Chaudhary. “There are two reasons for this -
HSBC is to step up costly restructuring plans after it reported a bigger than expected fall in quarterly profits and said business had become "more challenging" in recent months.The banking giant's interim chief executive Noel Quinn said previous plans - which already involved axing thousands of jobs - were "no longer sufficient". HSBC has been facing a gloomier business outlook hit by the US-China trade war as well as unrest in its key Hong Kong market and Brexit uncertainty in the UK.Pre-tax profits fell 18% to $ 4.8bn (£3.7bn) for the three months to the end of September compared with the same period last year and were lower than the $ 5.3bn (£4.1bn) expected by analysts.Shares were 5% lower in morning trading in London. Advertis
HSBC has agreed to pay $ 765m (£588m) to the US Department of Justice (DoJ) to settle a probe into the sale of mortgage-backed securities in the run-up to the financial crisis. It is the latest bank to settle claims of mis-selling toxic debt before the financial crisis.HSBC has paid a lot less than the Royal Bank of Scotland, which agreed to pay $ 4.9bn in May and Barclays' $ 2bn settlement with the DoJ in March.It had already set aside $ 897m in the first quarter for any potential settlements.The bank warned the "settlement-in-principle is subject to negotiation" and there was no "assurance that HSBC and the DoJ will agree on the final documentation".Europe's biggest bank made the announcement as it delivered a 4.6% rise in pretax profit for the first six months of t...