HSBC Boss Stuart Gulliver: I'm Sorry For 'The Mistakes Of The Past'

HSBC Boss 'I'm Sorry For 'The Mistakes Of The Past'

HSBC boss Stuart Gulliver apologised for "the mistakes of the past" as the banking giant set aside a further 1.5 billion US dollars (£950 million) to cover the cost of mis-selling claims and a money-laundering scandal in the US.

The bank said on Monday it increased its provision to cover mis-sold payment protection insurance (PPI) by 537 million US dollars (£341.6 million) in the three months to June, bringing the total charge to date to 1.7 billion US dollars (£1.1 billion).

HSBC also took a 237 million US dollar (£150 million) hit for mis-selling complex financial products known as interest-rate swaps to small businesses, while it has set aside 700 million US dollars (£445 million) to deal with money-laundering penalties.

Mr Gulliver said: "We are profoundly sorry for our mistakes, and are committed to putting them right."

Earlier this month the Labour party pressed trade minister Lord Green to make a public statement about what he knew of allegations that HSBC was engaged in money laundering while he was in charge of the bank after a US Senate committee sensationally accused the British banking giant of facilitating money laundering for drug king pins, rogue states and terrorists.

Labour shadow treasury minister Chris Leslie asked Lord Green, who was chairman of the bank between 2006 and 2010, to "account for his actions".

"As you will know, the US Senate Homeland Security Sub Committee on Investigations this week reported on a series of significant alleged failings at HSBC Bank during your tenure as chief executive and chairman," Leslie wrote.

“I do not believe that I have a case to answer other than in the important sense that as chairman and chief executive I was responsible for what the company did. HSBC has expressed regret for the failures. I share that regret.”

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