U.S Lawsuits pile high for HSBC
Duncan Richardson, News Editor
5 Aug 2014, 10:22 a.m.
HSBC bank confirmed they are facing a raft of lawsuits from U.S. investors, accusing them of manipulating the gold and silver price. One lawsuit accuses HSBC of conspiring to manipulate gold derivatives since January 2007.
The five banks which administrate the London Gold Fix have come under increasing scrutiny following the FCA’s decision to fine Barclays bank £26 million, after one of their gold traders was found guilty of manipulating the gold price.
HSBC Chief Executive, Stuart Gulliver, also faces a legal battle with shareholders after the bank was found guilty of breaching money laundering rules. Regulators concluded that the banks internal systems and controls were so poor that the bank became the “bank of choice” for international drug smugglers.
The bank also faces a £2.1 billion bill for mis-selling mortgage backed securities prior to the 2008 economic crises.
HSBC has also put aside £218 million for customer seeking compensation after the bank failed to inform them they could make overpayments on their personal loans.