The Hongkong and Shanghai Banking Corporation was founded in Hong Kong on March 3, 1865, and in Shanghai one month later. In 1980, HSBC acquired 51 per cent of Marine Midland Bank, buying the rest in 1987. HSBC Holdings was established in Britain in 1991 as the parent of The Hongkong and Shanghai Banking Corporation ahead of its purchase of the UK-based Midland Bank and the impending 1997 transfer of sovereignty of Hong Kong from Britain to China.
HSBC, Standard Chartered shares rise after news of settlement
HSBC Holdings and Standard Chartered both rose after reaching settlements with regulators, with HSBC forfeiting US$1.25 billion, and paying another US$665 million in civil penalties, while Standard Chartered has agreed to pay US$327 million in fines.
HSBC rose 30 HK cents, or 0.38 per cent to HK$79.75 in late morning trade in Hong Kong, and Standard Chartered was up HK$1.50, or 0.81 per cent, at HK$185.90. The benchmark Hang Seng Index was up 0.34 per cent.
A person familiar with the matter said HSBC, whose top executives were accused of lax oversight by a US Senate subcommittee in July, will forfeit US$1.25 billion, the biggest forfeiture ever by a bank, said a person familiar with the matter. It will also pay an addition US$665 million in civil penalties, the person said.
The agreement is due to be announced on Wednesday, sources said.
Separately, Standard Chartered agreed to pay US$327 million in fines after regulators alleged it violated US sanctions with Iran. The two banks have been the target either together or individually of investigations by several US regulators. These include the Department of Justice, the Treasury Department’s Office of Foreign Assets Control, the Federal Reserve, the Office of the Comptroller of the Currency, New York state regulators and the Manhattan District Attorney.