Latest news with #HSBCHoldingsPlc
Yahoo
30-07-2025
- Business
- Yahoo
HSBC's $300 Million Scandal Resurfaces -- Swiss Probe Reopens Risk for Global Bank
Swiss and French authorities have opened a new investigation into HSBC Holdings Plc's (NYSE:HSBC) Swiss private bank, reigniting concerns over legacy compliance risks that had long been buried. The probe centers on two historical client relationships, according to the bank's latest disclosure. While the details remain limited, HSBC warned investors that the potential impact on the firm could be materialthough the timing and outcome are still anyone's guess. Warning! GuruFocus has detected 6 Warning Sign with HSBC. This isn't the first time HSBC's Swiss arm has drawn regulatory heat. Just last year, Switzerland's financial regulator, Finma, found that the bank failed to perform adequate checks on politically exposed personsclients considered higher risk under anti-money laundering (AML) frameworks. Over $300 million in questionable transactions, processed between 2002 and 2015, were flagged. As a result, HSBC was ordered to tighten its AML controls and temporarily halt onboarding any new politically exposed clients. Now, with a fresh spotlight on its pastand scrutiny from two countriesHSBC's private banking business could be looking at a longer road to reputational repair. While this doesn't change the fundamentals overnight, it reopens old questions about governance and risk oversight. Investors watching from the sidelines may want to stay alert: depending on how the investigation unfolds, this story could evolve into a much bigger headline. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
30-07-2025
- Business
- Mint
HSBC Targeted in Swiss Probe Linked to Ex-Lebanon Central Banker
(Bloomberg) -- HSBC Holdings Plc's Swiss private bank is the focus of a Swiss investigation into suspected money-laundering connected to the alleged embezzlement of hundreds of millions of dollars by the former head of Lebanon's central bank. Swiss federal prosecutors opened the probe in January into HSBC Private Bank (Suisse) SA, an unnamed individual and four other 'unknown persons' in relation to the case, it said in a statement on Wednesday. It declined to comment further given the probe is ongoing. Since 2020, Swiss prosecutors have been investigating the case surrounding Riad Salameh, Lebanon's former central bank governor, who was then charged last year by Lebanese prosecutors with embezzling public funds, forgery, illicit enrichment and money laundering. Salameh was head of Lebanon's central bank for three decades before stepping down. He's been sanctioned by both the US and the UK, with the US Treasury accusing him of abusing his position of power to enrich himself and his associates. Salameh has repeatedly denied allegations against him and has said that his fortune was amassed during his previous career in finance. Earlier on Wednesday, the UK bank said that it was being investigated by Swiss and French law enforcement agencies over its involvement in alleged money laundering. The investigations are at an early stage and authorities are examining potential offenses related to what the bank said were 'two historical banking relationships,' according to a statement. HSBC warned the possible impact on the firm could be significant, though it was 'not practicable' to predict what that might be. Switzerland's financial regulator last year announced that it had found that HSBC's private bank had failed to carry out adequate checks on high-risk accounts owned by politically exposed persons. At the time, Finma said it had found serious violations of the law related to a total of more than $300 million of transactions carried out between 2002 and 2015. HSBC was ordered to conduct a review of its anti-money laundering systems and of all of its high-risk business relationships and relationships with politically exposed clients. The bank was also told that it could not take on any more politically exposed persons as clients until the work was complete. More stories like this are available on
Bloomberg
30-07-2025
- Business
- Bloomberg
European Stocks Dip on Glum Earnings Before Fed Rate Decision
European stocks slid following a flurry of disappointing earnings, while investors awaited the Federal Reserve's policy decision. The Stoxx Europe 600 Index was down 0.3% at 8:20 a.m. in London. Banking stocks dropped after a slate of mixed earnings reports. HSBC Holdings Plc fell 5% as it posted disappointing quarterly profit, while UBS Group AG gained as much as 3.7% on better-than-expected earnings.
Bloomberg
30-07-2025
- Business
- Bloomberg
HSBC Says Swiss and French Authorities Are Probing Private Bank
HSBC Holdings Plc 's Swiss private bank is being investigated by local and French law enforcement agencies over its involvement in alleged money laundering, the bank said in a statement. The investigations are at an early stage and authorities are examining potential offenses related to what the bank said were 'two historical banking relationships,' according to a statement. HSBC warned the possible impact on the firm could be significant, though it was 'not practicable' to predict what that might be.
Bloomberg
30-07-2025
- Business
- Bloomberg
HSBC Profit Squeezed by Costs, Higher Impairment Charges
HSBC Holdings Plc's earnings for the second quarter fell short of expectations after it posted a rise in expenses and took a charge on its holdings in a Chinese bank. The London-headquartered bank recorded a $2.1 billion impairment linked to its holding in Bank of Communications Co. At the same time, the firm said expenses jumped 10% to $8.9 billion.
