HSBC To Pay Hefty Government Fine
By: WROC-TV
Updated: December 12, 2012
Banking giant HSBC says it will pay a record $1.9 billion to settle U.S. allegations that it ignored red flags pointing to money laundering.
It is the biggest fine ever against a bank by the U.S. government. A Senate report earlier this year claimed HSBC Mexico unit shipped $7 billion in cash to its U.S. affiliates. The money is believed to be tied to Mexican drug cartels and banks linked to terrorism. HSBC says it accepts responsibility for its past mistakes. The nearly $2 billion fine isn't going to cripple the bank though. One analyst says the bank will earn back that much cash in just 41 days.
It is the biggest fine ever against a bank by the U.S. government. A Senate report earlier this year claimed HSBC Mexico unit shipped $7 billion in cash to its U.S. affiliates. The money is believed to be tied to Mexican drug cartels and banks linked to terrorism. HSBC says it accepts responsibility for its past mistakes. The nearly $2 billion fine isn't going to cripple the bank though. One analyst says the bank will earn back that much cash in just 41 days.
