Category: UK Companies

HSBC Budgeting For $1.5bn Money Laundering Settlement

Europe’s largest bank is bracing itself for a settlement with US regulators which analysts say could top $2 billion and is likely to lead to criminal charges as well.

HSBC on Monday set aside a further $1.15 billion to cover potential US fines for breaches in anti-money laundering controls in its Mexican unit as well as to compensate UK customers for mis-selling payment protection insurance, dragging down profits for the third quarter of the year.

Of the $1.15 billion, $800 million is set aside in relation to the ongoing US investigations.

Investment Banks Forced to Raise Starting Salaries for Graduates After Bank Scandals

Investment banks in London have been forced to offer more competitive salaries to attract this year’s top graduates who industry players say have been deterred by the recent banking scandals.

In an attempt to lure fresh graduates, top investment banks in London are reportedly boosting starting salaries by approximately 5 percent – on top of the 20 percent premium the banking industry pays its new graduate hires.

New recruits can expect to earn between £45,000 to £50,000 ($71,000 to $79,000) a year at top investment banks.

Standard Chartered Fined $340 million in Money Laundering Probe

Standard Chartered Bank has agreed to a $340 million settlement with the New York State Department of Financial Services that accused it of hiding $250 billion of illicit transactions with Iran.

State Department of Financial Services Superintendent Benjamin Lawsky said Tuesday that Standard Chartered Bank will pay the civil penalty to the state and will additionally strengthen oversight of overseas transactions.