HSBC to pay £1.2bn over Mexico scandalSubmitted by Bob-45 on Tue, 12/11/2012 - 04:43
News of bank's agreement comes hours after Standard Chartered admitted settlement with US regulator over Iran
HSBC is expected to admit on Tuesday it has settled allegations of running money for Mexican drug barons for a larger than expected $1.9bn (£1.2bn), barely 24 hours after close rival Standard Chartered admitted paying $670m (£415m) in penalties to US regulators to settle allegations it broke sanctions on Iran.
The $1.9bn that HSBC will pay to the US authorities exceeds the $1.5bn it had warned it could cost to settle the allegations raised in a damning US Senate report in the summer which came amid a wave of scandals to hit the banking sector.
HSBC is expected to confirm it has struck the agreement which has already led to the departure of compliance head David Bagley and put pressure on former chairman Lord Green, now a trade minister.