World Economy
0

HSBC Will Pay $101m to US in Settlement

HSBC Will Pay $101m to US  in Settlement HSBC Will Pay $101m to US  in Settlement

HSBC has agreed to pay $101.1 million to settle a US criminal investigation into rigged currency transactions, the BBC reported. The bank has admitted its traders twice misused confidential information provided to them by clients for its own profit. HSBC, which is Europe’s biggest bank, saw one of its former bankers convicted last year in connection with the probe. A US jury found Mark Johnson guilty of defrauding client Cairn Energy in a 2011 currency trade. The HSBC settlement is made up of a $63.1 million criminal penalty and $38.4 million in restitution to an unnamed corporate client. Separately it had already settled with Cairn Energy for approximately $8 million. As part of the US deal, HSBC has entered into a three-year deferred prosecution agreement with the US Department of Justice. The DPA, which would allow HSBC to avoid criminal charges, is pending a review by a US court. In September, the US Federal Reserve fined HSBC $175 million for “unsound” practices in its foreign exchange business.

 

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com