HSBC share price rises as it settles criminal probe for US$1.92 billion
Share price up as lender agrees to pay US$1.92 billion to settle allegations of shady dealing
HSBC Holdings has agreed to pay US$1.92 billion in fines to resolve a lengthy criminal investigation by US authorities into money laundering and terrorist financing, a record bank penalty.
The London-based bank, Europe's largest lender, said yesterday that it had entered a deferred prosecution agreement to settle the accusation of suspicious big-ticket money transactions between its Mexico and US units, and terrorist and illegal financing in the Middle East.
"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again," said Stuart Gulliver, HSBC's group chief executive.
The price of HSBC shares edged up by 0.3 per cent to HK$79.70 yesterday in Hong Kong, while they rose 0.1 per cent to 642 pence each in London by 1.30pm London time.
"The HSBC of today is a fundamentally different organisation from the one that made those mistakes," Gulliver said in a statement. "Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong, and to participate actively with government authorities in bringing to light and addressing these matters."