HSBC’s shares have stooped to lowest since 1995 after allegations of money laundering.
Some leaked secret files showed that the bank knew about fraudsters transferring millions of dollars around the world and did nothing to stop the scam even after learning about it.
Read on to know more…
The Money Laundering Story!
US Financial Crimes Enforcement Network (FinCEN) leaked some documents that show transactions worth $2 trillion of dirty money being carried out by criminals and how the world’s biggest banks have allowed these activities to happen.
In 2013 and 2014, HSBC moved the money through its US business to HSBC accounts in Hong Kong.
HSBC’s role in an $80 million fraud is detailed leaked of documents.
On Monday, in a statement, HSBC said that it would “not comment on suspicious activity reporting.” It defended its efforts to “combat financial crime.”
HSBC-China Tensions!
As the UK-based bank was handling global recession, decreased profits, US-China tensions, and political issues in Hong Kong, this development definitely comes as bad news.
To add to the woes of the bank, now China warned HSBC that it could be included on the list of companies that could face restrictions on doing business in China.
According to Refinitiv, in Hong Kong, HSBC’s stock closed at 5% and in London, the last trading down was 6%.
This year, with many pressures, the bank’s shares have fallen by nearly 50%. This is the lowest record in the past 25 years.
HSBC earns more than half of its profits from Asia and its shares are important components of both the London and Hong Kong share markets.
The shares of other banks named in the documents have also been plunging. Standard Chartered was down by 5% and Barclays as down by 6% whereas Deutsche Bank was down at 8%.
Comments are closed, but trackbacks and pingbacks are open.