HSBC Apologizes to US Senate

From FNNO.com, you’re watching the Financial News Network. I’m Laura Hankin, here with an update on HSBC. The bank, which the Senate accused of providing services to money-launderers and to banks with potential links to terrorism and drug cartels, appeared before the Senate today to apologize for its actions.At the hearing, David Bagley announced he would step down as the head of HSBC’s compliance office at its London headquarters. Bagley is the top executive in charge of HSBC’s anti-money-laundering programs. Bagley also revealed that HSBC plans to close many of its Cayman Islands accounts, after the Senate report showed that HSBC had little awareness or regulation of Cayman Island accounts holding $2.1 billion. Chief Legal Officer Stuart Levey stated that the bank has reorganized in order to better manage these risks. HSBC will still have to undergo an investigation by the Justice Department, where they could be forced to pay a fine that many believe might exceed the record $619 million fine paid by Dutch bank ING after similar accusations. HSBC closed down at $3.30 a share today, a .59% drop. For more updates on this and other stories, check out our Twitter @FNNOnline.