HSBC sets aside £236m to cover probe into rigging of foreign exchange markets

0
Have your say

HSBC has set aside £236m to cover a regulatory investigation into the rigging of foreign exchange (forex) markets.

The provision takes the total for the UK major banks so far to more than £1bn after Barclays and Royal Bank of Scotland said last week that they were putting aside £500m and £400m respectively.

HSBC has also added $701m – £438.9m – to its bill for 
customer redress in the UK, including for the mis-selling of payment protection insurance 
(PPI).

The company’s reported profits for the three months to September 30 were 2 per cent higher at £2.88bn.

The Financial Conduct Authority (FCA) and Serious Fraud Office (SFO) and the US Department of Justice, and other US authorities, are investigating banks over the forex claims that are the latest scandal to hit global banks.

Six banks are reported to be in discussions over a settlement on the affair before the end of the year.

In recent days, Switzerland’s UBS set aside £1.2bn and America’s Citigroup has taken a £375m hit to cover regulatory and litigation issues.

Chief executive Stuart Gulliver said: “The third quarter was a period of continued progress.”

HSBC is a major employer in Yorkshire through its Leeds-based subsidiary First Direct. It also operates a call centre and IT facility in Sheffield.

Tom Dougherty.

Leeds agency’s work gets top marks from university