Tags: biggest banks, contests of size, Deutsche Bank, Europe, HSBC, shrinkage
Getting caught money-laundering for the Iranians and drug cartels is pretty bad for business, as HSBC’s 2012 results demonstrate. But coming into compliance with all these new banking regulations is even worse.
Disgraced though HSBC may be, what with the $4 billion-plus it paid in fines to regulators last year, and the 17% drop in profit that entails, the old Hongkong and Shanghai Banking Corp. managed to shrink less than its friends in Frankfurt in an unusual race backwards, thereby dethroning the Germans as Europe’s largest bank. Read more »
Tags: HSBC, Mexican drug gangs, money laundering, Too Big To Fail
So, HSBC is going to have to cough up almost $2 billion for, in effect, running a massive money-laundering operation that helped fund such luminary do-gooders as the Iranian government and Mexican drug gangs. But the U.S. has decided not to throw the cuffs on the British bank because, well, that would be pretty hard. And could create an awful lot of collateral damage that no one needs as the country careens off the fiscal cliff. Read more »
Tags: Credit Suisse, harsh, HSBC, tax evasion, that's gonna leave a mark
Swiss banks are turning over thousands of employee names to U.S. authorities as they seek leniency for their alleged role in helping American clients evade taxes, according to lawyers representing banking staff. At least five banks supplied e-mails and telephone records containing as many as 10,000 names to the U.S. Department of Justice, according to estimates by Douglas Hornung, a Geneva- based lawyer representing 40 current and former employees of HSBC Holdings’s Swiss unit, Credit Suisse, and Julius Baer Group Ltd. The data handover is illegal, said Alec Reymond, a former president of the Geneva Bar Association, who is representing two Credit Suisse staff members. “The banks are burning their own people to try and cut deals with the DOJ,” said Hornung. “This violation of personal privacy is unprecedented in the Swiss banking industry.” [Bloomberg]
Tags: bummers, HSBC, Layoffs
Yeah, well. Apparently someone has been snacking between meals, and now there will be purges:
“There was a lot of talk about streamlining going on at the last strategy day, so I suppose this is a function of that,” one top 10 HSBC shareholder told Reuters. “It is a quite sprawling bank, and I wouldn’t be surprised if it has got a bit bloated here and there,” he said.
Sky News reports 10,000 cuts to save $3.5 billion. Many cuts will be in retail – shutting down 39 unprofitable markets, selling U.S. credit cards business, and shrinking U.S. retail. Read more »
Tags: Danielle Spencer, Dubai, HSBC, Priscila Ferreira, prison, Three's Company, Toby Carroll
Remeber Toby Carroll? To recap, he’s a New Zealand-born real estate analyst for HSBC who’s been stationed in Dubai for the last several years. In January, he was jailed after his ex-girlfriend, Priscilla Ferreira, found him and a new girl, Danielle Spencer, in his apartment and proceeded to start slashing curtains, furniture, etc, and go after the Danielle with a knife.** The police were called and all three were sent downtown because in Dubai, sex outside marriage is illegal. After a week in the clink Carroll, who friends describe as “a fun-loving party boy who was dedicated to his job, a snappy dresser who liked women but wasn’t womanizer,” was released (as were the ladies who became friends after being forced to share a mattress in the women’s cell at Bur Dubai police station. Hopefully Carroll’s made the most of his freedom over the last 6 months, because he’s set to be sent back after receiving his sentencing last week. Read more »
Tags: Bernie Madoff, big problems, HSBC, JPMorgan, people pleasers, people who can't say no to people, UBS
As he’s got time on his hands and there’s something cathartic about letting it all out, Bernie Madoff’s been on a little media tour of late (which will culminate with an appearance on Jerry Springer in a paternity episode you don’t want to miss). His last stop was at New York, where Berns told reporter Steve Fishman it irks him that no one ever cares to mention that he “had a successful business and did wonderful things for the industry” during the so-called “legitimate years.” Most recently he sat down for a little chat with the Financial Times and in an interview that will run in the upcoming weekend edition, told the paper that UBS and HSBC are going to have “big problems” and that JPMorgan? Should run and hide.
“I am not a banker but I know that $100bn going in and out of a bank account is something that should alert you to something,” he said from federal prison in Butner, North Carolina. “JPMorgan got all the financial statements…JPMorgan doesn’t have a chance in hell of not coming up with a big settlement [with trustee Irving Picard, who filed a lawsuit against the bank.”
But enough about them. Let’s get back to Berns. Why did he do it? Apparently in the full interview, Bernie says it wasn’t about the money but rather that he was a people pleaser. Read more »
Tags: crackdowns, Department of Justice, HSBC, taxes or lack thereof
Are you a wealthy individual who hasn’t exactly paid taxes, per se, or as much as you should have, in quite some time? Did you do so via HSBC India, which set you up with some secret accounts? Did you think you were being pretty clever, not going with UBS, which would’ve been like sticking a sign on your back proclaiming “I owe the government millions in taxes and unpaid parking tickets”? The DOJ would like to let you know that time’s up, smart guy. Read more »