UK bank HSBC fined $1.9 billion for money laundering .

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HSBC is to pay US authorities $1.9bn (£1.2bn) in a settlement over money-laundering, say reports, the largest ever in such a case.

The UK-based bank was alleged to have helped launder money belonging to drug cartels and states under US sanctions [Iran].

Earlier this year HSBC admitted having poor money laundering controls following a US Senate investigation.

BBC News - HSBC 'to pay $1.9bn' in US money laundering settlement
My question is, who exactly pays this fine. I can imagine the following discussion being carried on between the US authorities and the bank executives:

1: FBI to executives: "You broke the law and you're all going to go to jail for 20 years".

2: US treasury to FBI: "*Ahum!*"

3: FBI to executives: "You broke the law and you're all going to jail for 10 years and paying fines totalling exactly what you personally made from these illegal activities."

4: Bank executives to FBI via US treasury: "No Sir, please NO! We will pay a huge, far greater fine financed by our shareholder's dividends and pension funds and not go to jail at all."

5: All smile, nod in agreement and slap each other on the back.

OK, maybe that was a bit pathetic.... or was it?

PS: Strange that a bank called "Hong Kong and Shanghai Banking Corporation" with its main activities in Asia is based in the UK... Wonder why that is...

 

[waltky]

HSBC antes up for mortgage market malpractice...

HSBC pays $470m for mortgage misconduct
5 February 2016 - HSBC has reached a $470m (£325m) settlement with the US government and states related to dubious mortgage lending and foreclosure practices that contributed to the financial crisis.

The agreement includes a $100m fine and $370m in consumer relief to borrowers. Investigations began in 2010 after HSBC was found to be signing off foreclosure documents without proper review. In a statement, the bank's chief executive Kathy Madison called the agreement a "positive result."

The consumer relief will require the bank to cut the loan amount on mortgages for homeowners close to default. HBSC will also be required to change internal practices like foreclosing on homeowners who are being considered for a loan modification. "The agreement is part of our ongoing effort to address root causes of the financial crisis," said the head of the Justice Department's Civil Division Benjamin Mizer.

The deal settles claims with 49 states, the District of Columbia and the federal government. HSBC's agreement is similar to deals that were given to US banks including JP Morgan and Bank of America in 2012.

HSBC pays $470m for mortgage misconduct - BBC News