HSBC

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HSBC Holdings plc is a UK multinational banking and financial services company, tracing its origins to Hong Kong. It is the seventh largest bank in the world with total assets and the largest in Europe with total assets of US $ 2.374 trillion (as per December 2016). Established in its present form in London in 1991 by The Hongkong and Shanghai Banking Corporation to act as a new group holding company. The origins of the bank are located mainly in Hong Kong and to a lesser extent in Shanghai, where the branch first opened in 1865. The name HSBC comes from the initials of Hongkong and Shanghai Banking Corporation. The company was first established in 1866. The company continues to see Britain and Hong Kong as "home markets".

HSBC has approximately 3,900 offices in 67 countries and territories in Africa, Asia, Oceania, Europe, North America and South America, and about 38 million subscribers. In 2014, it is the sixth largest public company in the world, according to a combined measure by Forbes magazine.

HSBC is organized into four business groups: Commercial Banking; Global Banking and Markets (investment banking); Retail Banking and Wealth Management; and Global Private Banking.

HSBC has two main listings on the Hong Kong Stock Exchange and the London Stock Exchange and is a constituent of the Hang Seng Index and the FTSE 100 Index. On July 6, 2012, it had a market capitalization of Â£ 102.7 billion, the second-largest company listed on the Stock Exchange London, after Royal Dutch Shell. It has a secondary listing on the New York Stock Exchange, Euronext Paris and the Bermuda Stock Exchange.

In February 2015, the International Consortium of Investigative Journalists released information on HSBC's business conduct under the title Swiss Leaks . ICIJ alleges that banks have benefited from doing business with tax evaders and other clients. The BBC reports that HSBC has been pressuring the media not to report on the controversy, with British newspaper The Guardian claiming that HSBC ads have been "stopped" after The Guardian of coverage on this issue. Peter Oborne, the chief political commentator at The Daily Telegraph resigned from the paper; In an open letter, he claimed the newspaper suppressed a negative story and dropped an investigation into HSBC due to bank advertising.

By 2016, HSBC is sued by Mexican families who are involved in deaths by organized crime gangs to process funds ("money laundering") for Sinaloa Cartel.

Video HSBC

History

Origins, and up to 2000

"The Hongkong and Shanghai Bank" was founded by Scotsman Sir Thomas Sutherland in the British colony in Hong Kong on March 3, 1865, and in Shanghai a month later, benefited from early trade to China, including opium trade. It was officially incorporated as "The Hongkong and Shanghai Banking Corporation" by the Ordinance of the Hong Kong Legislative Council on August 14, 1866. In 1980, HSBC acquired a 51% stake in the US-based Marine Midland Bank, which extended to full ownership in the year 1987. On October 6, 1989, it was renamed by the Legislative Council, by an amendment to the original regulation set up in 1929, "The Hongkong and Shanghai Banking Corporation Limited", and became registered as a bank governed by the Banking then the Hong Kong Government Commissioner.

"HSBC Holdings plc", originally established in England and Wales, in the UK, as "Vernat Trading Company Limited" on January 1, 1959 and later renamed "Vernat Eastern Agencies Limited" in the same year, at that time was trading, an inactive rack with a different nominal name, upon completion of the transformation on March 25, 1991 to become the parent holding company to Hong Kong and Shanghai Banking Corporation Limited now as a subsidiary, in preparation for the purchase of Midland based UK Bank and transfer of Hong Kong sovereignty to China which will come. The acquisition of HSBC Holdings' from Midland Bank was completed in 1992 and gives HSBC a large market presence in the UK. As part of a takeover for acquisition, HSBC Holdings plc is required to relocate its headquarters from Hong Kong to London in 1993.

The major acquisitions in South America began with the purchase of Banco Bamerindus from Brazil for $ 1 billion in March 1997 and the acquisition of Roberts SA de Inversiones from Argentina for $ 600 million in May 1997. In May 1999, HSBC expanded its presence in the United States. with the purchase of Republic National Bank of New York for $ 10.3bn.

2000 to 2010

Expansion to the European Continent took place in April 2000 with the acquisition of CrÃƒÆ'Ã‚ Â© at Commercial de France, a large French bank for Ã‚ Â£ 6.6bn. In July 2001 HSBC bought Demirbank, a bankrupt Turkish bank. In July 2002, Arthur Andersen announced that HSBC USA, Inc., through its new subsidiary, Wealth and Tax Advisory Services USA Inc. (WTAS), would purchase part of Andersen's tax practices. The new HSBC Private Client Services Group will serve the needs of wealthy advisors and high value individual taxes. Then in August 2002 HSBC acquired Grupo Financiero Bital, SA de CV, Mexico's third largest retail bank for $ 1.1bn.

In November 2002, HSBC expanded further in the United States. Under Sir John Bond's leadership, the company spent Ãƒ, Ã‚ Â£ 9 billion (US $ 15.5 billion) to acquire Household Finance Corporation (HFC), US credit card issuer and subprime lender. In the 2003 cover story, The Banker notes "when banking historians look back, they can conclude that [it] is a deal of the first decade of the 21st century." Under the new name HSBC Finance, this division is the second largest subprime lender in the US.

HSBC Holdings headquarters at 8 Canada Square, London officially opened in April 2003.

In September 2003, HSBC bought Polski Kredyt Bank SA from Poland for $ 7.8m. In June 2004, HSBC expanded into China by purchasing 19.9% â€‹â€‹of Bank of Communications of Shanghai. In the UK, HSBC acquired Mark & â€‹â€‹Ã¢ â‚¬ < Spencer Retail Financial Services Holdings Ltd. for Ãƒ, Ã‚ Â£ 763m in December 2004. The acquisition in 2005 included Metris Inc., US credit card issuer of $ 1.6 billion in August and 70.1% of the Investment Bank of Dar es Salaam Iraq in October. In April 2006, HSBC purchased 90 branches in Argentina's Banca Nazionale del Lavoro for $ 155 million. In December 2007, HSBC acquired Chinese Bank in Taiwan. In May 2008, HSBC acquired IL & amp; FS Investment, an Indian retail brokerage firm.

In 2005, Bloomberg magazine Markets accused HSBC of laundering money for drug dealers and terrorism state sponsors. Then-CEO Stephen Green said that "This is a single attack and is completely irresponsible of the bank's international compliance procedures", but subsequent investigations show that it is accurate and proves that banks are involved in money laundering for the Sinaloa Cartel and across Mexico. US Attorney General Assistant Lanny Breuer characterized HSBC's compliance during this period as "an astonishing failure of surveillance - and worse... The dysfunction record that has been working at HSBC for years is astounding."

In March 2009, HSBC announced that it would close the branch network of the HSBC Finance arm in the US, causing nearly 6,000 job losses and leaving only the credit card business to continue operating. Chairman Stephen Green stated, "HSBC has a reputation for telling it the way it is.With the benefits of backward, this is an acquisition we hope we did not do." According to analyst Colin Morton, "the takeover is an absolute disaster".

Despite being at the center of a subprime storm, the wider group has overcome the 2007-2010 financial crisis better than any other global bank. According to Bloomberg, "HSBC is one of the strongest banks in the world with a few steps". When HM Treasury required all British banks to raise their capital in October 2007, the group transferred Ãƒ, Ã‚ Â£ 750 million to London within hours, and announced that they had just lent Ãƒ, Ã‚ Â£ 4 billion to other UK banks. In March 2009, it was announced that they generated US $ 9.3bn of profit in 2008 and announced a rights issue rights of Â£ 12.5bn ($ 17.7bn; HK $ 138bn) to enable it to buy other banks that are struggling to survive. However, the uncertainty over the rights issues' implications for institutional investors led to volatility in the Hong Kong stock market: on March 9, 2009 the share price of HSBC fell 24.14%, with 12 million shares sold in the last few seconds of trading.

2010 to 2013

On May 11, 2011, new chief executive Stuart Gulliver announced that HSBC will refocus its business strategy and that large-scale operation avoidance, particularly related to the retail sector, has been planned. HSBC will no longer be looking to become a 'local bank in the world', as the costs associated with this are a spiral and US $ 3.5bn needs to be saved by 2013, with the aim of bringing overheads down from 55% of revenue to 48%. In 2010, then chairman Stephen Green planned to leave HSBC to receive a government appointment at the Ministry of Commerce. Group Chief Executive Michael Geoghegan is expected to become the next chairman. However, while many current and former senior employees support the tradition of promoting chief executive to chair, many shareholders instead of pushing for external candidates. The board of directors of HSBC is reported to have been divided into succession plans, and investors are worried that the dispute will damage the company.

On September 23, 2010, Geoghegan announced it would resign as CEO of HSBC. He was replaced as HSBC chief executive by Stuart Gulliver, while Green was replaced as Chairman by Douglas Flint; Flint serves as chief financial officer of HSBC (chief financial officer). August 2011: Next to CEO Stuart Gulliver's plan to cut $ 3.5 billion in fees over the next 2 years, HSBC announced it will cut 25,000 jobs and exit 20 countries by 2013 in addition to the 5,000 job cuts announced earlier this year. HSBC's consumer banking division will focus on UK, Hong Kong, high growth markets such as Mexico, Singapore, Turkey and Brazil, and smaller countries where it has a leading market share. According to Reuters, Chief Executive Stuart Gulliver told the media, "There will be further termination of employment.There will be something like 25,000 roles eliminated between now and the end of 2013."

In August 2011 "to align our US business with our global network and meet local and international needs from domestic and overseas clients", HSBC agreed to sell 195 branches in New York and Connecticut to First Niagara Financial Group Inc., and divest to KeyCorp , Community Bank, NA, and Five Star Bank for about $ 1 billion, and announced the closure of 13 branches in Connecticut and New Jersey. The remaining US HSBC network will only be about half of the 470 branches before the divestment. On August 9, 2011, Capital One Financial Corp. agreed to acquire US $ 2.6 billion HSBC credit card business, sealing HSBC Holdings's estimated earnings after tax of $ 2.4 billion. In September it was announced that HSBC is trying to sell its general insurance business for about $ 1 billion.

In 2012, HSBC became the subject of a Senate US permanent subcommittee hearing for an inquiry into the severe shortcomings in its anti money laundering practice (see # Controversy). On July 16, the organizers presented their findings. Among other things, it was concluded that HSBC had transferred $ 7 billion of banknotes from Mexico to US subsidiaries (mostly related to drug trafficking), ignored terrorist financing links and actively avoided US protection to block transactions involving terrorists, kings drugs. and the evil regime, including hiding $ 19.4 billion in transactions with Iran. This investigation followed from an investigation by the US Federal Reserve and the Office of Currency Financial Supervisors found that there was "significant potential for unreported money laundering or terrorist financing".

On December 11, 2012, HSBC agreed to pay a $ 1.92 billion fine in the money laundering case. "Bank officials repeatedly ignored internal warnings that the HSBC monitoring system was inadequate, the Justice Department said.In 2008, for example, CEO of HSBC Mexico was informed that Mexican law enforcement has a recording of a Mexican drug king who said that HSBC Mexico is a place to launder money. "The DOJ, however, decided not to pursue criminal punishment, a decision that the New York Times labeled" a dark day for the rule of law. " HSBC chief executive Stuart Gulliver said: "We accept responsibility for our past mistakes We have said we are very sorry for them, and we do it again."

The 32-page brochure published on the HSBC website provides detailed 2012 results on market, strategy and business, and outlines future plans.

In July 2013, Alan Keir was appointed Chief Executive of HSBC Bank plc after Brian Robertson resigned from his post. Keir's job includes overseeing the divisions of British, European, Middle Eastern and African companies.

Since 2013

In June 2014, a wholly owned indirect subsidiary, HSBC Life (UK) Limited agreed to sell Ã‚ Â£ 4.2 billion in UK pensions to Swiss Re. In February 2015, the International Consortium of Investigative Journalists released information on HSBC's business conduct under the title Swiss Leaks based on the 2007 HSBC account record hacked from HervÃƒÆ'Ã‚ Â© Falciani whistleblower. ICIJ alleges that banks benefit from doing business with corrupt politicians, dictators, tax evaders, blood diamond dealers, arms dealers and other clients. US Senate investigators in 2012 have searched for accounts of hacked HSBC accounts from Falciani and French authorities, but never received data.

HSBC announced in August 2015 that it would sell its unit in Brazil to Banco Bradesco for $ 5.2 billion after years of disappointing performance. By 2015, HSBC is recognized as the most trusted foreign bank in India by The Brand Trust Report 2015.

In 2016, the bank was mentioned several times in connection with the Panama Papers investigation. Many Syrians were angry when their accounts were rated high-risk and closed, although the bank reportedly told Mossack Fonseca that "comfortable" with Rami Makhlouf as a customer, although US sanctions against it were in effect at the time.

In May 2016, HSBC announced that it would close 24 of its 50 branches in India over the next few months, reducing its presence in the country to fourteen cities.

On March 20, 2017, the British newspaper The Guardian reported that hundreds of banks had helped launder KGB-related funds out of Russia, as discovered by an inquiry called Global Laundromat. HSBC is listed among 17 banks in the UK who "face questions about what they know about international schemes and why they do not turn off suspicious money transfers," as HSBC "processes $ 545.3 million in cash Laundromat, mostly transferred through Hong Branch Kong. "Other banks that are under surveillance under investigation include Royal Bank of Scotland, NatWest, Lloyds, Barclays and Coutts. In response, HSBC stated that it was against financial crimes, and that the case "highlights the need for greater information sharing between the public and private sectors."

On October 1, 2017, Mark Tucker succeeded Douglas Flint as Chairman of the HSBC Group, the first non-executive chairman and the first appointed by the group. Also in October 2017, HSBC announced that John Flint, Chief Executive of Retail Banking and Wealth Management, will replace Stuart Gulliver as Group Chief Executive on February 21, 2018.

Maps HSBC

Operation

HSBC has global headquarters at 8 Canada Square in Canary Wharf, London.

HSBC has a significant presence in every major financial market of the world, with America, Asia Pacific and Europe each representing about a third of its business. HSBC is Hong Kong's largest bank and prints most of Hong Kong's local currency in its own name. By 2014, according to Relsbank, HSBC is the world's fourth largest bank with assets (with $ 2,670.00 billion), second largest revenue (with $ 146.50 billion) and largest in terms of market value (with $ 180.81 billion). It is also the most profitable bank in the world with $ 19.13 billion in net income in 2007 (compared to $ 3.62 billion Citigroup and Bank of America $ 14.98 billion in the same period). In June 2006, The Economist stated that since the end of 2005 HSBC has been rated as the largest banking group in the world by Tier 1 capital. In June 2014, The Banker placed HSBC in the first rank in Western Europe and ranked fifth in the world for Tier 1 capital. In February 2008, HSBC was named the most valuable banking brand in the world by Banker magazine .

HSBC is known for its conservative approach and avoids business risks - a corporate tradition that goes back to the 19th century.

In its technical management, however, HSBC recently suffered a series of major incidents causing some customer data to be suspected of leaking or disappearing. Although the consequences were small, the embarrassing effects on group drawings did not go unnoticed.

HSBC has been audited by PwC, one of the Big Four auditors since 2015.

HSBC entered Brunei in 1947. However, in April 2016, HSBC began closing operations in the country by citing a global review of the HSBC Group to optimize its global network and reduce the complexity described in HSBC Investor Update on June 9, 2015.

In preparation for Brexit, HSBC announced that it would face as much as $ 300 million in legal and relocation costs as it plans to relocate 1,000 staff members from London to Paris. In the second quarter of 2017, banks have $ 4 million in fees for "costs associated with UK exit from the EU". HSBC plans to move about one-fifth of London-based investment bankers to its Paris office. To maintain a sustainable access point to a single EU market. While its headquarters will remain in London, staff movements are expected to avoid losing $ 1 billion in revenue after Brexit.

Primary subsidiary

Asia Pacific

Europe

Mongolian HSBC
HSBC France
HSBC Trinkaus und Burkhardt AG
HSBC Bank International - HSBC Group's offshore banking branch, focusing on providing offshore solutions and cross-border services for expatriates and migrants. It provides a variety of multi-currency personal banking services for various customer segments, including full Internet banking and telephone banking services. Sometimes referred to as "HSBC Offshore", the business also offers independent financial planning, and has representative offices worldwide, often working with local HSBC operations in the region. HSBC Bank International comes from a business started by Midland Bank and is based in the Channel Islands with further operations in the Isle of Man. His operations on the Channel Islands are centered around his seafront headquarters in St. Louis. Helier, Jersey.
HSBC Bank Malta plc
HSBC Bank A.?.
HSBC Private Bank (UK) Ltd
HSBC UK Bank plc
HSBC Bank plc

America

HSBC Bank USA
HSBC Bank Canada
HSBC Bank Bermuda
HSBC Mexico
HSBC Finance Corporation

Middle East and North Africa

HSBC Bank Middle East Ltd
HSBC Bank Egypt SAE
The Saudi British Bank

Groups and key business divisions

HSBC conducts activities dealing with customers in four business groups: Commercial Banking; Global Banking and Markets (investment banking); Retail Banking and Wealth Management (RBWM); and Global Private Banking.

Commercial Banking

HSBC provides financial services for small, medium and midsize companies. The group has more than 2 million such subscribers, including sole proprietors, partnerships, clubs and associations, legal entities and companies that are publicly quoted.

Global Banking and Markets

Global Banking and Markets is an investment banking branch of HSBC. It provides investment banking and financing solutions for corporate and institutional clients, including corporate banking, investment banking, capital markets, trade services, cash payments and management, and leveraged acquisition financing. It provides services in equity, credit and interest rates, foreign exchange, money market and securities services, in addition to asset management services. Global Banking and Markets has offices in more than 60 countries and territories worldwide, and describes itself as a "growth-led and financing-focused market". Currently headed by former fixed-income trader Samir Assaf, who was promoted from the head of global markets on December 10, 2010.

Global Private Banking

HSBC Private Bank is the marketing name for the private banking business conducted by the major private banking subsidiaries of the HSBC Group worldwide. HSBC Private Bank, together with the private banking activities of HSBC Trinkaus, known collectively as Group Private Banking, provide services to high-value individuals and their families through 93 locations in 42 countries and regions in Europe, the Asia-Pacific region, Middle East and Africa. According to Scorpio Partnership Global Private Banking Benchmark 2014, the bank owns 382 USD Bn of managed assets (AuM) decreased by 4% in 2013 figures.

In September 2008, HSBC announced that it would merge two Swiss private banks under one brand name in 2009, with HSBC Guyerzeller and HSBC Private Bank to be merged into one legal entity, under the newly appointed CEO of HSBC Private Bank, Alexandre Zeller.

Retail banking and wealth management

HSBC provides over 54 million customers worldwide with a variety of personal financial services, including checking and savings accounts, mortgage loans, car financing, insurance, credit cards, loans, pensions and investments. Retail Banking and Wealth Management (also known as RBWM) was formerly referred to as Personal Financial Services (PFS). This name change was announced on HSBC 2011 Investor Day.

Group service center

As a cost-saving measure, HSBC is offshoring processing jobs to lower cost economies to reduce the cost of providing services in developed countries. These locations take on jobs such as data processing and customer service, but also internal software engineering in Pune (India), Gurgaon (India), Bangalore (India), Chennai (India), Hyderabad (India), Vishakhapatnam (India), Kolkata (India) India), Guangzhou (China), Curitiba (Brazil) and Kuala Lumpur (Malaysia). Chief Operating Officer Alan Jebson said in March 2005 that he would be very surprised if fewer than 25,000 people worked in the centers over the next three years: "I do not have the right target but I would be surprised if we have less than 15 global) within three years. "He goes on to say that each center costs the bank from $ 20m to $ 30m to set up, but for every job a bank move saves about $ 20,000 (Ãƒ,Ã‚ Â£ 10,400). Trade unions, especially in Britain and the United States, blame these centers for job losses in developed countries, as well as for the effective imposition of wage caps on their members.

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Global product line

HSBC Direct

HSBC Direct is a direct online phone/banking operation that attracts customers through mortgages, accounts, and savings. It was first launched in the United States in November 2005 and is based on HSBC's 'First Direct' subsidiary in the UK which was launched in the 1980s. This service is now also available in Canada, Taiwan, South Korea, Australia, France and India. Poland launched its direct business in September 2009. In the US, HSBC Direct is now part of HSBC Advance.

HSBCnet

HSBCnet provides access to the functionality of banking transactions - from payments and cash management to feature trading services - as well as to research and analytical content from HSBC. It also includes the functions of foreign exchange and money market trading. This system is used extensively by HSBC's corporate and institutional high-end clients that are serviced diversely by the banking and global banking markets, commercial banking and global transaction banking divisions. HSBCnet is also a brand in which HSBC markets global e-commerce propositions to its corporate and institutional clients.

Advance HSBC

HSBC Advance is a group product intended for working professionals. The exact benefits and qualifications vary depending on the country, but usually require a Salary transfer of USD1,500 or more per month or Maintaining 25,000 US Dollars deposits in Savings/Current Accounts or investments. Benefits may vary depending on the country, such as day-to-day banking services including but not limited to Platinum Credit Cards, Advance ATM Cards, Current Accounts, and Savings Accounts. Protection plan and Financial Planning Services. HSBC's Advance customers allow customers to open accounts in other countries and transfer their credit history.

HSBC Premier

HSBC Premier is a premium group financial services product. It has its own Elite Card titled HSBC Premier World Card. The benefits and criteria of appropriate qualifications vary depending on the country. Customers have a dedicated Premier Relationship Manager, 24-hour global access to call centers, free banking services, and preferential rates. HSBC Premier customers receive HSBC Premier service in all countries offering HSBC Premier, without having to meet the country's qualification criteria ("Premier in One, Premier in All").

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Leadership

Group Chair : Mark Tucker (October 2017 to present)
Group Chief Executive : John Flint (February 2018 to serve)

has decided to bid farewell to its 50,000 employees

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Controversy

Money laundering

In 2003 and 2010, US regulators ordered HSBC to strengthen its anti money laundering practices. In October 2010, the United States OCC issued a Cease and Order Order requiring HSBC to strengthen various aspects of its Anti-Money Laundering (AML) program. Identified issues include a very large backlog of over 17,000 notices identifying suspicious activity, failure to file reports of suspicious activity on time with US law enforcement, failure to perform due diligence to assess risks to HSBC affiliates before opening correspondent accounts for them , the three year failures by HBUS from mid-2006 to mid-2009 to make an AML of $ 15 billion in cash transactions in bulk from the same HSBC affiliate, failure to monitor $ 60 trillion in annual wire transfers by customers in countries assessed lower risk by HBUS, and inadequate and unqualified staff, resources, and leadership of AML. It is noted that HSBC fully cooperates with the Senate investigation.

On July 19, 2012, India investigated alleged violations of security compliance, in which Indian employees are believed to be involved. On November 9, 2012, Indian activist and politician Arvind Kejriwal said he has details of 700 Indian bank accounts that hide black money with a total value of INR 60 billion (US $ 890 million) with HSBC in Geneva. In June 2013, a media outlet in India was disguised where HSBC officers were caught on camera agreeing to launder "black money." HSBC put these employees on leave while awaiting their own internal investigation.

In November 2012 it was reported that HSBC had arranged overseas accounts in Jersey for suspected drug traffickers and other criminals, and that HM Revenue and Customs had launched an investigation after the disclosure of a leaked Ãƒ Â£ 700 million allegedly held in HSBC account at Crown dependence.

Following a search warrant and raid order beginning January 2013, in mid-March 2013 Argentina's main tax authority alleges that HSBC is using fake receipts and fake accounts to facilitate money laundering and tax evasion.

In early February 2013, appearing before the UK Parliamentary Banking Standards Commission, CEO Stuart Gulliver acknowledged that the bank's structure had "not met the purpose." He also stated, "Things that should be shared and enhanced are not shared and enhanced." HSBC has also been charged with laundering money for terrorist groups.

In June 2015, HSBC was fined by the Geneva authorities after a money laundering investigation in its Swiss subsidiary. The fine is 40 million Swiss Francs.

US Senate Investigation 2012

In July 2012, the US Senate committee issued a report stating that HSBC has violated money laundering rules has helped Iran and North Korea outsmart US nuclear weapons sanctions.

In December 2012, US Attorney General Assistant Lanny Breuer suggested that the US government may refuse criminal prosecution of HSBC which could lead to the loss of US bank charter. He stated, "Our goal here is not to bring down HSBC, it does not cause systemic effects on the economy, not for people losing thousands of jobs."

In December 2012, HSBC was subject to $ 1.9 billion (US) sanctions, the largest fines under the Bank Secrecy Act, for violating four US laws designed to protect the U.S. financial system. HSBC allegedly laundered at least $ 881 million in medicines through the US financial system for international cartels, as well as processing an additional $ 660 million for banks in US sanctions countries. According to the report, "US bank subsidiaries [also] failed to monitor more than $ 670 billion in wire transfers and more than $ 9.4 billion in physical dollar purchases from its unit in Mexico." As part of an agreement pending his prosecution, HSBC acknowledged that for years it has ignored warning signs that Mexico's drug cartels are using its branches to launder millions of dollars, and also recognize that HSBC's international staff has removed identification information conducted through the United States from countries facing economic sanctions such as Iran and Sudan.

A February 2013 article in Rolling Stone magazine, critical of what they consider to be a shy response by the US Department of Justice, states "Yes, they issue fines - $ 1.9 billion, or about five weeks' profit - but they do not extract as much as a dollar or a day in jail from every individual, even though a decade of embarrassing offense "and further stated," In this case, the bank actually escaped with murder - good, helpful and conspiring, anyway. "The article in December 2012 CNNMoney compares the $ 1.9 billion fine with HSBC's" last year "earnings (2011) of 16.8 billion.

$ 3.5 billion currency scheme

In July 2016 the United States Department of Justice charged two executives of HSBC Bank over alleged $ 3.5 billion currency schemes that deceived HSBC clients and "manipulated the foreign exchange market to benefit themselves and their banks". "Mark Johnson and Stuart Scott, both British citizens, are accused". "Johnson was arrested Tuesday night [July 19, 2016] at JFK International Airport in New York City." "Stuart Scott, who is head of HSBC's foreign exchange trading in London until December 2014, is accused of committing the same crime.The warrant was issued for Scott's arrest." Mark Johnson was convicted for nine wire fraud charges and a conspiracy for fraud related to the front of running the currency trading of HSBC clients.

Forex scandal

HSBC is one of the finest financiers in the UK and US in 2014 in Forex scandals.

Libor and Euribor

HSBC set $ 17.9 million in the Libor scandal. HSBC was fined 33 million euros for their role in Euribor level manipulation (relative to other banks in small quantities).

Other controversies

Deforestation

In a report entitled "In the Future No Remaining Forest" produced by Global Witness, the bank is also accused of supporting the seven largest Malaysian timber conglomerates responsible for rapid deforestation in Malaysia's Sarawak state without FSC certification.. However, the bank refuses to divulge his client on this matter, for reasons of client's confidentiality; but the bank states that allegations that its clients violate forest area policies and forest products are not accurate.

HSBC contributes to deforestation in Indonesia and the subsequent harmful impacts in the region by providing direct funding to one of the largest companies that have undertaken projects in state peat forests. The company has been hit and railed over the past year for participating in malicious actions damaging the environment for profit. Although HSBC has rejected claims that they are sponsoring this environmentally irresponsible activity, Greenpeace has collected resources and research to draw connections between companies and their customers.

Gaddafi's regime in Libya

HSBC also holds billions of dollars in assets for the Libyan Investment Authority, controlled by Colonel Muammar Gaddafi; after the overthrow and assassination of Gaddafi, the bank refused to disclose information about the funds, citing customer confidentiality.

Application of heavy money laundering rules

In 2014, HSBC refused to allow customers to withdraw large sums of cash without third-party letters confirming what the money will be used. Douglas Carswell, Conservative MP for Clacton, worries about HSBC's policy: "All the rules that have been enacted in the bank allow for enormous interpretation, which essentially weighs on the customer, meaning your money becomes an allowance and the bank becomes your parent."

In 2014, HSBC closed the Central London Central Mosque account and multiple accounts of Muslim clients and groups. Some sources report that HSBC allegedly closed them because they donated their money to Gaza through Hamas-related charities during the Gaza-Israel war of 2014.

Payment-processing failures

In August 2015, HSBC failed to process BACS payments, leaving thousands of people without their salary. This prevents customers from completing home purchases, and is unable to afford essential home care.

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Logo

The Group announced in November 1998 that the HSBC brand and the hexagon symbol will be adopted as an integrated brand in all markets where HSBC operates, with the aim of enhancing the recognition of the group and its values â€‹â€‹by customers, shareholders and staff worldwide.. The hexagon symbol was originally adopted by Hongkong and Shanghai Banking Corporation as its logo in 1983. It was developed from the bank's home flag, a white rectangle divided diagonally to produce a red hourglass shape. Like many other Hong Kong corporate flags dating back to the 19th century, and because of the nationality of its founders, the design is based on the Saint Andrew cross. The logo was designed by Austrian graphic artist Henry Steiner.