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Monday, February 22, 2016

HSBC Subject To SEC Probe

HSBC, whilst reporting a $1.33 billion net loss in the fourth quarter, has warned of a “bumpier financial environment” from China’s slowing economy.

Additionally, as per the Wall Street Journal, it said that its hiring practices in China are being investigated by the U.S. Securities and Exchange Commission, bringing the bank into the so-called “princelings” probe that is studying whether more than half a dozen U.S. and European lenders violated antibribery laws by hiring relatives of high-ranking Chinese government officials. HSBC said it is cooperating with the investigation and said it couldn’t predict the timing or impact on the bank.

In an update on its five-year deferred prosecution agreement with the U.S. Department of Justice, HSBC reported setbacks in its programs to comply with the agreement. The independent monitor in charge of assessing its compliance found instances of potential financial crime and had “significant concerns” about the bank’s pace of progress in its most recent report in January.

The monitor withheld a crucial certification around HSBC’s remedial measures, “pending further review and discussion with HSBC.”

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