Several global banks moved large sums of allegedly illicit funds -- to the tune of&nbsp;$2tn -- over a period of nearly two decades, despite red flags about the origins of the money, several media reports&nbsp;said on Monday (IST).

The reports are&nbsp;based on leaked suspicious activity reports (SARs) filed by banks and other financial firms with the US Department of Treasury's Financial Crimes Enforcement Network (FinCen).&nbsp;

Leaked documents&nbsp;also show how Russian oligarchs have used banks to avoid sanctions that were supposed to stop them getting their money into the West. They have&nbsp;exposed similar secret deals, money laundering and financial crime.

The SARs, which the reports said numbered more than 2,100, were shared with the International Consortium of Investigative Journalists (ICIJ) and other media organisations.

The FinCEN files contain a 20-page “intelligence assessment” on the mirror network and list 54 shell companies that moved billions of dollars annually from Russia through European securities markets to other jurisdictions beginning as early as 2011.

The investigation also highlighted the American authorities' lack of power in regulating dirty financial transactions.

In all, the ICIJ reported that the files contained information about more than $2 trillion worth of transactions between 1999 and 2017, which were flagged by internal compliance departments of financial institutions as suspicious. The SARs are in themselves not necessarily proof of wrongdoing, and the ICIJ reported the leaked documents were a tiny fraction of the reports filed with FinCEN.

Five global banks appeared most often in the documents — HSBC Holdings Plc, JPMorgan Chase &amp; Co, Deutsche Bank AG, Standard Chartered Plc and Bank of New York Mellon Corp, the ICIJ reported.

At least 44 Indian banks figure in the FinCEN Files primarily because they are “correspondent banks” to the foreign banks which have filed these SARs. Key in this list are Punjab National Bank, Kotak Mahindra, HDFC Bank, Canara Bank, IndusInd Bank and Bank of Baroda, among others.

The SARs provide key intelligence in global efforts to stop money laundering and other crimes. The media reports on Sunday painted a picture of a system that is both under-resourced and overwhelmed, allowing vast amounts of illicit funds to move through the banking system.

A bank has a maximum of 60 days to file SARs after the date of initial detection of a reportable transaction, according to the Treasury Department's Office of the Comptroller of the Currency. The ICIJ report said in some cases the banks failed to report suspect transactions until years after they had processed them.

The SARs also showed that banks often moved funds for companies that were registered in offshore havens, such as the British Virgin Islands, and did not know the ultimate owner of the account, the report said. Staff at major banks often used Google searches to learn who was behind large transactions, it said.

Among the types of transactions highlighted by the report: funds processed by JPMorgan for potentially corrupt individuals and companies in Venezuela, Ukraine and Malaysia; money from a Ponzi scheme moving through HSBC; and money linked to a Ukrainian billionaire processed by Deutsche Bank.

"I hope these findings spur urgent action from policymakers to enact needed reforms," said Tim Adams, chief executive of the trade group Institute of International Finance, in a statement. "As noted in today's reports, the impacts of financial crime are felt beyond just the financial sector – it poses grave threats to society as a whole."

In a statement to Reuters, HSBC said "all of the information provided by the ICIJ is historical." The bank said as of 2012, "HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions."

Standard Chartered said in a statement to Reuters, "We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programmes."

BNY Mellon told Reuters it could not comment on specific SARs. "We fully comply with all applicable laws and regulations, and assist authorities in the important work they do," the bank said.

JPMorgan said it has "thousands of people and hundreds of millions of dollars dedicated to this important work." "We have played a leadership role in anti-money laundering reform," the bank said in a statement.

In a statement on Sunday, Deutsche Bank said the ICIJ had "reported on a number of historic issues." "We have devoted significant resources to strengthening our controls and we are very focused on meeting our responsibilities and obligations," the bank said.

FinCen said in a statement on its website on September 1 that it was aware that various media outlets intended to publish a series of articles based on unlawfully disclosed SARs, as well as other documents, and said that the "unauthorised disclosure of SARs is a crime that can impact the national security of the United States."

FinCEN&nbsp;has also uncovered a web of transactions of a flourishing money laundering network, purportedly run by Pakistani national Altaf Khanani who is also said to have been a key financier for fugitive terrorist Dawood Ibrahim.

These SARs also detail transactions of Khanani’s Money Laundering Organisation (MLO) and the Al Zarooni Exchange.

Khanani was arrested at the Panama airport -- on September 11, 2015 -- following a trans-continental undercover operation, and put behind bars in a Miami prison. His detention ended in July 2020.

He was to be handed over to US immigration authorities for deportation. But there has been no recent update on whether he has been deported to Pakistan or the UAE.

The arrest of Khanani was seen as a breakthrough by Indian intelligence agencies given the Dawood Ibrahim connection.

Also, Lashkar-e-Toiba and Jaish-e-Mohammed -- specifically mentioned by the OFAC as terror organisations -- have been being funded by him.

FinCEN’s intelligence report says Mazaka General Trading LLC received $49.78 million from five Moscow Mirror Network entities between March 2013 and October 2016.

This is also where Indian links emerged in the functioning of the Altaf Khanani laundering operation. A scrutiny of transactions of Mazaka General Trading show it traded with a New Delhi-based company, Rangoli International Pvt Limited. This company, dealing in wholesale trade and garment exports, was set up in 2009.

The FinCEN Files have around 70 transactions listed for Rangoli International, mostly with UAE-based entities with the remittances being routed through several Indian banks: the Punjab National Bank, Central Bank of India, Oriental Bank of Commerce, Corporation Bank, Vijaya Bank and Bank of Maharashtra.

Records of the Registrar of Companies (RoC) show that Rangoli International witnessed a sharp deterioration and decline in profitability in the year ending March 2014 and incurred a loss of Rs 74.87 crore over a sales revenue of Rs 339.19 crore. The company has not held an annual shareholders meeting since 2015, the year it also filed its last balance sheet.

(with inputs from agencies)

Several global banks moved large sums of allegedly illicit funds -- to the tune of $2tn -- over a period of nearly two decades, despite red flags about the origins of the money, several media reports said on Monday (IST).

Several global banks moved large sums of allegedly illicit funds -- to the tune of $2tn -- over a period of nearly two decades, despite red flags about the origins of the money, several media reports said on Monday (IST). The reports are based on leaked suspicious activity reports (SARs) filed by banks and other financial firms with the US Department of Treasury's Financial Crimes Enforcement Network (FinCen). Leaked documents also show how Russian oligarchs have used banks to avoid sanctions that were supposed to stop them getting their money into the West. They have exposed similar secret deals, money laundering and financial crime. The SARs, which the reports said numbered more than 2,100, were shared with the International Consortium of Investigative Journalists (ICIJ) and other media organisations. The FinCEN files contain a 20-page “intelligence assessment” on the mirror network and list 54 shell companies that moved billions of dollars annually from Russia through European securities markets to other jurisdictions beginning as early as 2011. The investigation also highlighted the American authorities' lack of power in regulating dirty financial transactions. In all, the ICIJ reported that the files contained information about more than $2 trillion worth of transactions between 1999 and 2017, which were flagged by internal compliance departments of financial institutions as suspicious. The SARs are in themselves not necessarily proof of wrongdoing, and the ICIJ reported the leaked documents were a tiny fraction of the reports filed with FinCEN. Five global banks appeared most often in the documents — HSBC Holdings Plc, JPMorgan Chase & Co, Deutsche Bank AG, Standard Chartered Plc and Bank of New York Mellon Corp, the ICIJ reported. At least 44 Indian banks figure in the FinCEN Files primarily because they are “correspondent banks” to the foreign banks which have filed these SARs. Key in this list are Punjab National Bank, Kotak Mahindra, HDFC Bank, Canara Bank, IndusInd Bank and Bank of Baroda, among others. The SARs provide key intelligence in global efforts to stop money laundering and other crimes. The media reports on Sunday painted a picture of a system that is both under-resourced and overwhelmed, allowing vast amounts of illicit funds to move through the banking system. A bank has a maximum of 60 days to file SARs after the date of initial detection of a reportable transaction, according to the Treasury Department's Office of the Comptroller of the Currency. The ICIJ report said in some cases the banks failed to report suspect transactions until years after they had processed them. The SARs also showed that banks often moved funds for companies that were registered in offshore havens, such as the British Virgin Islands, and did not know the ultimate owner of the account, the report said. Staff at major banks often used Google searches to learn who was behind large transactions, it said. Among the types of transactions highlighted by the report: funds processed by JPMorgan for potentially corrupt individuals and companies in Venezuela, Ukraine and Malaysia; money from a Ponzi scheme moving through HSBC; and money linked to a Ukrainian billionaire processed by Deutsche Bank. "I hope these findings spur urgent action from policymakers to enact needed reforms," said Tim Adams, chief executive of the trade group Institute of International Finance, in a statement. "As noted in today's reports, the impacts of financial crime are felt beyond just the financial sector – it poses grave threats to society as a whole." In a statement to Reuters, HSBC said "all of the information provided by the ICIJ is historical." The bank said as of 2012, "HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions." Standard Chartered said in a statement to Reuters, "We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programmes." BNY Mellon told Reuters it could not comment on specific SARs. "We fully comply with all applicable laws and regulations, and assist authorities in the important work they do," the bank said. JPMorgan said it has "thousands of people and hundreds of millions of dollars dedicated to this important work." "We have played a leadership role in anti-money laundering reform," the bank said in a statement. In a statement on Sunday, Deutsche Bank said the ICIJ had "reported on a number of historic issues." "We have devoted significant resources to strengthening our controls and we are very focused on meeting our responsibilities and obligations," the bank said. FinCen said in a statement on its website on September 1 that it was aware that various media outlets intended to publish a series of articles based on unlawfully disclosed SARs, as well as other documents, and said that the "unauthorised disclosure of SARs is a crime that can impact the national security of the United States." FinCEN has also uncovered a web of transactions of a flourishing money laundering network, purportedly run by Pakistani national Altaf Khanani who is also said to have been a key financier for fugitive terrorist Dawood Ibrahim. These SARs also detail transactions of Khanani’s Money Laundering Organisation (MLO) and the Al Zarooni Exchange. Khanani was arrested at the Panama airport -- on September 11, 2015 -- following a trans-continental undercover operation, and put behind bars in a Miami prison. His detention ended in July 2020. He was to be handed over to US immigration authorities for deportation. But there has been no recent update on whether he has been deported to Pakistan or the UAE. The arrest of Khanani was seen as a breakthrough by Indian intelligence agencies given the Dawood Ibrahim connection. Also, Lashkar-e-Toiba and Jaish-e-Mohammed -- specifically mentioned by the OFAC as terror organisations -- have been being funded by him. FinCEN’s intelligence report says Mazaka General Trading LLC received $49.78 million from five Moscow Mirror Network entities between March 2013 and October 2016. This is also where Indian links emerged in the functioning of the Altaf Khanani laundering operation. A scrutiny of transactions of Mazaka General Trading show it traded with a New Delhi-based company, Rangoli International Pvt Limited. This company, dealing in wholesale trade and garment exports, was set up in 2009. The FinCEN Files have around 70 transactions listed for Rangoli International, mostly with UAE-based entities with the remittances being routed through several Indian banks: the Punjab National Bank, Central Bank of India, Oriental Bank of Commerce, Corporation Bank, Vijaya Bank and Bank of Maharashtra. Records of the Registrar of Companies (RoC) show that Rangoli International witnessed a sharp deterioration and decline in profitability in the year ending March 2014 and incurred a loss of Rs 74.87 crore over a sales revenue of Rs 339.19 crore. The company has not held an annual shareholders meeting since 2015, the year it also filed its last balance sheet. (with inputs from agencies)

FinCEN documents show how global banks moved illicit funds despite red flags

Some banks and companies in Nepal are allegedly involved in transferring money obtained suspiciously from oversees, an investigation made by the Center for Investigative Journalism (CIJ), Nepal along with the International Consortium of Investigative Journalists (ICIJ) and BuzzFeed has revealed.

The investigative report released on Sunday shows the involvement of Nepali companies and banks attempting to deceive US sanctions on trade especially on Iran and China. 
 
<a href="https://www.wionews.com/business-economy/fincen-documents-show-how-global-banks-moved-illicit-funds-despite-red-flags-329028">Also read | FinCEN documents show how global banks moved illicit funds despite red flags</a>

Based on a top-secret document prepared by 'Financial Crimes Enforcement Network', a government body that monitors financial transactions system in the US, the collective investigation report has been named 'FinCEN Files'.

According to 'FinCEN Files', between December 2006 and March 2017, 9 banks, 10 companies and various individuals in Nepal were found to have transacted (sent/received) suspicious funds in the name of cross-border trade.

"This shows that some Nepali business entities are linked to the international smuggling of gold, antiquities, bitumen, and telecommunication equipment. Standard Chartered Bank, Prime Commercial Bank, Bank of Kathmandu, Nepal Investment Bank, Everest Bank, Mega Bank, Himalayan Bank, Apex Development Bank of Kaski, and Nepal Bangladesh Bank are mentioned in the list of banks that are involved in transferring money suspicious," the 25 paged report based on covering Nepal stated.

FinCEN Files showed involvement of 10 Nepali companies that directly sent or received suspicious funds. As per the report, a suspicious amount of 292.7 million US Dollars has been transacted through these banks and companies during 11 years.

The report has named Rauniyar Brothers &amp; Company, SubhaSamriddhi Traders Pvt. Ltd., Shasta Trading Company, Setidevi Export Import Pvt. Ltd., L.D. International Pvt. Ltd., Felt and Yarn Pvt. Ltd., Woman's Paper Crafts, Acme Money Transfer Service, and Sunny Enterprises as the companies allegedly involved in suspicious cross-border transactions.

Amongst the companies, Rauniyar Brothers &amp; Company, Shubha Shambridhi Traders, Private Limited, based in Parsa District of Nepal have allegedly conducted suspicious transactions via a Dubai based company called 'Kite International FZE,' whose main business into import and export petroleum products such bitumen, engine oil for vehicles, lubricants, and rubber processing oil.

"Through these dubious Dubai based companies, the Rauniyar family has traded and transferred suspicious money in the name of import and export of bitumen and petroleum products in Nepal. Rauniyar Brothers and Shubha Shambridhi Traders have repeatedly opened Letters of Credit (LC) from Standard Chartered Bank of Kathmandu between September 28, 2010, and September 4, 2014. During these four years, these two companies have sent payments of 71.4 million US Dollars to different countries, including Dubai," the report revealed.

Further adding, "FinCEN has pointed out sensitive facts about these companies. Rauniyar's company brought the goods from Iran-a country where the United States has imposed a trade ban. However, the documents have been forged to show that the goods have been imported from Dubai".

During the investigation, Nepal's Investigative Journalists tried to get a response from Kite via email but didn't receive any reply. But the team of investigative journalists found that 'Kite International FZE' stationed in Kenya, Zambia, Mozambique, Nepal and the United States also has launched "a new project for higher education in Nepal" over its website. But no official record is available for the project thus claimed.

Narayanji Rauniyar, one of the directors of two companies, whose link has been established with Kite, said that both his companies are currently closed. "There is no company now. It's been four or five years since it was shut down," the report quoted him as saying.

"We used to import bitumen, but we don't anymore," he added. FinCEN stated that his son, Prakash Kumar Rauniyar, was the mastermind behind the business. Narayanji said that he was abroad and would give his phone number but that did not happen. Both the Rauniyar Brothers &amp; Company, SubhaSamriddhi Traders Pvt. Ltd. are registered with the name of Narayan Ji Rauniyar of Birgunj and his four sons - ShyamBabu, JyotiBabu, Prakash Kumar, and Deep Kumar Babu.

Bonding between a Nepali Bank and ZTE

According to FinCEN, Zhongxing Telecommunication Equipment (ZTE) Corporation, China's largest telecommunications service provider company, remitted 213.3 million US Dollars to other countries, including Nepal, from March 17, 2011, to March 1, 2017.

ZTE had done the transaction through Beijing-based China Construction Bank. The US-based New York branch of China Construction Bank had discovered that the transacted amount was suspicious.

In the duration of three years and four months from November 4, 2013, to February 27, 2017, ZTE was found to have deposited some amount in Nepal Investment Bank, according to 'FinCEN'.

In the description, four separate amounts: $5,709.09, $5,244.76, $40,357.75 and $10 are found to be deposited by ZTE Corporation in Nepal Investment Bank, Kathmandu.

According to FinCEN, citing various media outlets, the five-year-long investigation mentioned "several conspiracies" that the ZTE created to evade US sanctions. The company "makes the purchase of telecommunications equipment from the United States and sells it illegally to Iran as ZTE's equipment." According to FinCEN, the ZTE traded suspicious funds in various countries to deceive regulating bodies against US sanctions.

ZTE is one of the leading exporters of telecommunication equipment in Nepal. Soon after the Gorkha Earthquake of 2072 B.S, ZTE was importing materials for constructing a tower for Ncell-a telecommunication company based in Nepal.

The purpose of the import was commercial, but it intended to bypass customs duty, where it tried to bring goods by sticking Red Cross stickers on the imported goods. After it was discovered during the customs inspection, ZTE had to pay 10.1 million rupees to release its goods.

"BijendraSuwal, Deputy General Manager of Nepal Investment Bank, said that the so-called suspicious documents should be sent for the response. He said that the bank could not disclose the relationship between the bank and the customer as per the Banking and Financial Institutions Act, 2073 BS," the report stated.

"Due to a lack of proper evidence, we are unable to disclose information about our customers owing to privacy obligations," Suwal has been quoted in a report which the group of Investigative Journalists received as an email reply.

There was no response from the ZTE on the report.

Some banks and companies in Nepal are allegedly involved in transferring money obtained suspiciously from oversees, an investigation made by the Center for Investigative Journalism (CIJ), Nepal along with the International Consortium of Investigative Journalists (ICIJ) and BuzzFeed has revealed.

Some banks and companies in Nepal are allegedly involved in transferring money obtained suspiciously from oversees, an investigation made by the Center for Investigative Journalism (CIJ), Nepal along with the International Consortium of Investigative Journalists (ICIJ) and BuzzFeed has revealed. The investigative report released on Sunday shows the involvement of Nepali companies and banks attempting to deceive US sanctions on trade especially on Iran and China. Also read | FinCEN documents show how global banks moved illicit funds despite red flags Based on a top-secret document prepared by 'Financial Crimes Enforcement Network', a government body that monitors financial transactions system in the US, the collective investigation report has been named 'FinCEN Files'. According to 'FinCEN Files', between December 2006 and March 2017, 9 banks, 10 companies and various individuals in Nepal were found to have transacted (sent/received) suspicious funds in the name of cross-border trade. "This shows that some Nepali business entities are linked to the international smuggling of gold, antiquities, bitumen, and telecommunication equipment. Standard Chartered Bank, Prime Commercial Bank, Bank of Kathmandu, Nepal Investment Bank, Everest Bank, Mega Bank, Himalayan Bank, Apex Development Bank of Kaski, and Nepal Bangladesh Bank are mentioned in the list of banks that are involved in transferring money suspicious," the 25 paged report based on covering Nepal stated. FinCEN Files showed involvement of 10 Nepali companies that directly sent or received suspicious funds. As per the report, a suspicious amount of 292.7 million US Dollars has been transacted through these banks and companies during 11 years. The report has named Rauniyar Brothers & Company, SubhaSamriddhi Traders Pvt. Ltd., Shasta Trading Company, Setidevi Export Import Pvt. Ltd., L.D. International Pvt. Ltd., Felt and Yarn Pvt. Ltd., Woman's Paper Crafts, Acme Money Transfer Service, and Sunny Enterprises as the companies allegedly involved in suspicious cross-border transactions. Amongst the companies, Rauniyar Brothers & Company, Shubha Shambridhi Traders, Private Limited, based in Parsa District of Nepal have allegedly conducted suspicious transactions via a Dubai based company called 'Kite International FZE,' whose main business into import and export petroleum products such bitumen, engine oil for vehicles, lubricants, and rubber processing oil. "Through these dubious Dubai based companies, the Rauniyar family has traded and transferred suspicious money in the name of import and export of bitumen and petroleum products in Nepal. Rauniyar Brothers and Shubha Shambridhi Traders have repeatedly opened Letters of Credit (LC) from Standard Chartered Bank of Kathmandu between September 28, 2010, and September 4, 2014. During these four years, these two companies have sent payments of 71.4 million US Dollars to different countries, including Dubai," the report revealed. Further adding, "FinCEN has pointed out sensitive facts about these companies. Rauniyar's company brought the goods from Iran-a country where the United States has imposed a trade ban. However, the documents have been forged to show that the goods have been imported from Dubai". During the investigation, Nepal's Investigative Journalists tried to get a response from Kite via email but didn't receive any reply. But the team of investigative journalists found that 'Kite International FZE' stationed in Kenya, Zambia, Mozambique, Nepal and the United States also has launched "a new project for higher education in Nepal" over its website. But no official record is available for the project thus claimed. Narayanji Rauniyar, one of the directors of two companies, whose link has been established with Kite, said that both his companies are currently closed. "There is no company now. It's been four or five years since it was shut down," the report quoted him as saying. "We used to import bitumen, but we don't anymore," he added. FinCEN stated that his son, Prakash Kumar Rauniyar, was the mastermind behind the business. Narayanji said that he was abroad and would give his phone number but that did not happen. Both the Rauniyar Brothers & Company, SubhaSamriddhi Traders Pvt. Ltd. are registered with the name of Narayan Ji Rauniyar of Birgunj and his four sons - ShyamBabu, JyotiBabu, Prakash Kumar, and Deep Kumar Babu. Bonding between a Nepali Bank and ZTE According to FinCEN, Zhongxing Telecommunication Equipment (ZTE) Corporation, China's largest telecommunications service provider company, remitted 213.3 million US Dollars to other countries, including Nepal, from March 17, 2011, to March 1, 2017. ZTE had done the transaction through Beijing-based China Construction Bank. The US-based New York branch of China Construction Bank had discovered that the transacted amount was suspicious. In the duration of three years and four months from November 4, 2013, to February 27, 2017, ZTE was found to have deposited some amount in Nepal Investment Bank, according to 'FinCEN'. In the description, four separate amounts: $5,709.09, $5,244.76, $40,357.75 and $10 are found to be deposited by ZTE Corporation in Nepal Investment Bank, Kathmandu. According to FinCEN, citing various media outlets, the five-year-long investigation mentioned "several conspiracies" that the ZTE created to evade US sanctions. The company "makes the purchase of telecommunications equipment from the United States and sells it illegally to Iran as ZTE's equipment." According to FinCEN, the ZTE traded suspicious funds in various countries to deceive regulating bodies against US sanctions. ZTE is one of the leading exporters of telecommunication equipment in Nepal. Soon after the Gorkha Earthquake of 2072 B.S, ZTE was importing materials for constructing a tower for Ncell-a telecommunication company based in Nepal. The purpose of the import was commercial, but it intended to bypass customs duty, where it tried to bring goods by sticking Red Cross stickers on the imported goods. After it was discovered during the customs inspection, ZTE had to pay 10.1 million rupees to release its goods. "BijendraSuwal, Deputy General Manager of Nepal Investment Bank, said that the so-called suspicious documents should be sent for the response. He said that the bank could not disclose the relationship between the bank and the customer as per the Banking and Financial Institutions Act, 2073 BS," the report stated. "Due to a lack of proper evidence, we are unable to disclose information about our customers owing to privacy obligations," Suwal has been quoted in a report which the group of Investigative Journalists received as an email reply. There was no response from the ZTE on the report.

Nepal banks and companies helping China, Iran skirt US sanctions: FinCEN Files

HSBC said Monday profits for the first half of 2020 plunged by 69 percent on year as the banking giant was hammered by the coronavirus pandemic and spiralling China-US tensions.

The lender reported post-tax profit of $3.1 billion while pre-tax profit was $4.3 billion, a 64 percent drop on the same period last year. Reported revenue was down nine percent at $26.7 billion.

The figures missed analyst forecasts and the bank also raised its estimate for 2020 loan losses from $8 billion to $13 billion.

Its shares plunged more than four percent on the Hong Kong stock exchange after the results were released in the lunch break, trading at HK33.55.

Chief executive Noel Quinn described the first six months of the year as "some of the most challenging in living memory".

"Our first-half performance was impacted by the COVID-19 pandemic, falling interest rates, increased geopolitical risk and heightened levels of market volatility," he said in a statement to the Hong Kong stock exchange.

Even by the standards of the current economic maelstrom engulfing global banks, HSBC has had a torrid time.&nbsp;

Before the coronavirus crisis it was beset by disappointing profit growth, ground down by US-China trade war uncertainties and Britain's departure from the European Union.

The Asia-focused lender embarked on a huge cost-cutting initiative at the start of the year, including plans to slash about 35,000 jobs as well as trimming fat from less profitable divisions, primarily in the United States and Europe.

The coronavirus upended some of that cost-cutting drive with banks hammered by market volatility and the economic slowdown caused by the pandemic.

But HSBC has a further headache -- geopolitical tensions via its status as a major business conduit between China and the West.

HSBC makes 90 percent of its profit in Asia, with China and Hong Kong being the major drivers of growth.

- Caught in crossfire - 
As a result it has found itself more vulnerable than most to the crossfire caused by the increasingly bellicose relationship between Beijing and Washington.

The bank has tried to stay in Beijing's good graces.&nbsp;

It vocally backed a draconian national security law that Beijing imposed on Hong Kong in June to end a year of unrest and pro-democracy protests.

The move sparked criticism in Washington and London but analysts saw it as an attempt to protect its access to China, which has a track record of punishing businesses that do not toe Beijing's line.

But that has not shielded it from Beijing's wrath.&nbsp;

Last month the bank was a subject of multiple reports in China's state-run media claiming that it had helped to provide the evidence that led to the arrest in Canada of Huawei executive Meng Wanzhou on a US arrest warrant.

HSBC released a statement on its Chinese Weibo accounts saying it had not "framed" telecom giant Huawei or "fabricated evidence" that led to the arrest of Meng.

China's internet censors blocked access to HSBC's statement within hours of publication, without offering an explanation.

Quinn referenced the bank's growing political vulnerability in Monday's statement.

"Current tensions between China and the US inevitably create challenging situations for an organisation with HSBC's footprint," he said.

"However, the need for a bank capable of bridging the economies of East and West is acute, and we are well placed to fulfil this role," he added.

The bank's Asia operations continued to show "good resilience", Quinn said, with profit before tax of $7.4 billion.

Earlier this year Quinn put some of the job cuts on hold as the pandemic struck.

But in Monday's statement he vowed to press ahead with the cost-cutting.

"As we seek to accelerate our transformation in the second half of the year, I am mindful of the impact it will have for some of our people, particularly those leaving us," he said.&nbsp;

HSBC said Monday profits for the first half of 2020 plunged by 69 percent on year as the banking giant was hammered by the coronavirus pandemic and spiralling China-US tensions.

HSBC said Monday profits for the first half of 2020 plunged by 69 percent on year as the banking giant was hammered by the coronavirus pandemic and spiralling China-US tensions. The lender reported post-tax profit of $3.1 billion while pre-tax profit was $4.3 billion, a 64 percent drop on the same period last year. Reported revenue was down nine percent at $26.7 billion. The figures missed analyst forecasts and the bank also raised its estimate for 2020 loan losses from $8 billion to $13 billion. Its shares plunged more than four percent on the Hong Kong stock exchange after the results were released in the lunch break, trading at HK33.55. Chief executive Noel Quinn described the first six months of the year as "some of the most challenging in living memory". "Our first-half performance was impacted by the COVID-19 pandemic, falling interest rates, increased geopolitical risk and heightened levels of market volatility," he said in a statement to the Hong Kong stock exchange. Even by the standards of the current economic maelstrom engulfing global banks, HSBC has had a torrid time. Before the coronavirus crisis it was beset by disappointing profit growth, ground down by US-China trade war uncertainties and Britain's departure from the European Union. The Asia-focused lender embarked on a huge cost-cutting initiative at the start of the year, including plans to slash about 35,000 jobs as well as trimming fat from less profitable divisions, primarily in the United States and Europe. The coronavirus upended some of that cost-cutting drive with banks hammered by market volatility and the economic slowdown caused by the pandemic. But HSBC has a further headache -- geopolitical tensions via its status as a major business conduit between China and the West. HSBC makes 90 percent of its profit in Asia, with China and Hong Kong being the major drivers of growth. - Caught in crossfire - As a result it has found itself more vulnerable than most to the crossfire caused by the increasingly bellicose relationship between Beijing and Washington. The bank has tried to stay in Beijing's good graces. It vocally backed a draconian national security law that Beijing imposed on Hong Kong in June to end a year of unrest and pro-democracy protests. The move sparked criticism in Washington and London but analysts saw it as an attempt to protect its access to China, which has a track record of punishing businesses that do not toe Beijing's line. But that has not shielded it from Beijing's wrath. Last month the bank was a subject of multiple reports in China's state-run media claiming that it had helped to provide the evidence that led to the arrest in Canada of Huawei executive Meng Wanzhou on a US arrest warrant. HSBC released a statement on its Chinese Weibo accounts saying it had not "framed" telecom giant Huawei or "fabricated evidence" that led to the arrest of Meng. China's internet censors blocked access to HSBC's statement within hours of publication, without offering an explanation. Quinn referenced the bank's growing political vulnerability in Monday's statement. "Current tensions between China and the US inevitably create challenging situations for an organisation with HSBC's footprint," he said. "However, the need for a bank capable of bridging the economies of East and West is acute, and we are well placed to fulfil this role," he added. The bank's Asia operations continued to show "good resilience", Quinn said, with profit before tax of $7.4 billion. Earlier this year Quinn put some of the job cuts on hold as the pandemic struck. But in Monday's statement he vowed to press ahead with the cost-cutting. "As we seek to accelerate our transformation in the second half of the year, I am mindful of the impact it will have for some of our people, particularly those leaving us," he said.

HSBC profits hammered by pandemic and soaring US-China tensions

HSBC Holdings PLC warned its bad debt charges could blow past a previous estimate to $13 billion this year and said its profits more than halved, as the coronavirus pandemic hammered the bank's retail and corporate customers worldwide.

Fineprint: HSBC's net profit plunges 96 per cent

HSBC on Saturday denied Chinese media reports that it had "framed" Huawei Technologies and played a role in the arrest of the chief financial officer (CFO) of the world's biggest telecoms equipment maker.

HSBC on Saturday denied Chinese media reports that it had "framed" Huawei Technologies and played a role in the arrest of the chief financial officer (CFO) of the world's biggest telecoms equipment maker. In a statement posted on the bank's Chinese WeChat messaging service account, the London-headquartered lender said it did not participate in the decision of the US Department of Justice to investigate Huawei. The HSBC statement comes a day after China's official People's Daily newspaper published a report accusing HSBC of being an accomplice of the United States and lying about Huawei, resulting in the arrest of its CFO Meng Wanzhou. Also read: France planning to halt renewal of Huawei's licence for operators by 2028 Meng was arrested in December 2018 at Vancouver International Airport on a warrant from the United States. She is accused by U.S. authorities of bank fraud for misleading HSBC about Huawei's relationship with a company operating in Iran, putting HSBC at risk of fines and penalties for breaking U.S. sanctions on Tehran. "The context of the development of the Huawei incident clearly shows that the U.S. investigation of Huawei was not triggered by HSBC," the bank said in its WeChat post, without directly referring to the People's Daily report. Also read: Huawei, Alibaba among 7 Chinese companies with links to Chinese Army could face the music "HSBC has no malice against Huawei, nor has it 'framed' Huawei," it said. "In response to information requests from the U.S. Department of Justice, HSBC only provided factual information. HSBC has not 'fabricated' evidence or 'concealed' facts, nor will it distort facts or harm any customers for our own benefit." The People's Daily report on Friday alleged HSBC was well aware of Huawei's business in Iran, and had been "setting traps" for the company since 2012. Other Chinese media, including the China Global Television Network, have made similar allegations against HSBC. Meng is fighting extradition to the United States and has said she is innocent. She has been in house arrest in Vancouver since her detainment.

HSBC denies Chinese media reports that it 'framed' Huawei

Asia-focused banking giant HSBC's vocal support for China's controversial Hong Kong security law has not been well received in Britain, the former ruler of the city.

The London-headquartered lender last week backed Beijing's contentious legal proposal for Hong Kong, which critics fear will be used to stamp out dissent in the city.

Also read |&nbsp;<a href="https://www.wionews.com/world/china-privately-urged-top-hong-kong-officials-to-back-national-security-law-304961">China privately urged top Hong Kong officials to back national security law</a>

HSBC's announcement angered business and political circles in Britain, which returned the former colony to Chinese rule in 1997.

Also read |&nbsp;<a href="https://www.wionews.com/world/hong-kong-marks-one-year-of-pro-democracy-activism-with-fresh-protests-53-arrested-304706">Hong Kong marks one year of pro-democracy activism with fresh protests, 53 arrested</a>

The bank's decision flew in the face of convention because most multinationals attempt to steer clear of political intervention.

However, HSBC's top Asia executive, Peter Wong, has signed a petition in support of the law.

In addition, London-listed bank Standard Chartered -- which also focuses primarily on Asia -- sided with Beijing over the law.

'Cosy up'&nbsp;

"The UK-listed banks have taken China's side as it is clear they want to cosy up to the second largest economy in the world," said CMC Markets analyst David Madden.

HSBC insisted the Chinese measures would help "stabilise" Hong Kong and "revitalise" its economy.

HSBC's move came after Hong Kong's pro-Beijing former leader Leung Chun-ying criticised the bank for not publicly supporting the law -- while profiting from its Chinese business interests.&nbsp;

Asia remains critical for HSBC because the bank generates the majority of its profits in the region.

The lender's chief executive Noel Quinn announced plans this year to axe 35,000 jobs as HSBC strengthens its focus on Asia and trims fat from less profitable activities in Europe and the United States.

'Synonymous with Hong Kong'

HSBC -- or the Hong Kong &amp; Shanghai Banking Corporation -- is closely linked to the history of the former British colony.

The bank was founded in Hong Kong and Shanghai in 1865 -- but has been based in Britain since 1993.

"HSBC is synonymous with Hong Kong – the website and bank cards feature the skyline, the HSBC building in Hong Kong is an iconic one, and the firm employs around 30,000 people in Hong Kong," said Emma Wall, head of investment analysis at broker Hargreaves Lansdown.

"To those outside of the region it may therefore come as a surprise that HSBC, and other firms such as Standard Chartered, have put up no resistance to the recent divisive bill.

"But ultimately, any corporate decision will be made with future revenues in mind -- and for HSBC half of their revenues come from Asia," she added.

But the bank's decision has been met with anger from prominent politicians in Britain.

Former Conservative Party leader Iain Duncan Smith said HSBC's support for China's national security law was a "grave error".

Lisa Nandy and Anneliese Dodds, leading lawmakers in the main opposition Labour party, have meanwhile written to both banks to express concern.

Last week's decision also risks HSBC's reputation on the global stage.

US Secretary of State Mike Pompeo criticised the bank for backing the law, calling it a "cautionary tale" and warning of businesses' overreliance on Beijing.

"That show of fealty seems to have earned HSBC little respect in Beijing, which continues to use the bank's business in China as political leverage against London," Pompeo said in a statement.

Asia-focused banking giant HSBC's vocal support for China's controversial Hong Kong security law has not been well received in Britain, the former ruler of the city.

Asia-focused banking giant HSBC's vocal support for China's controversial Hong Kong security law has not been well received in Britain, the former ruler of the city. The London-headquartered lender last week backed Beijing's contentious legal proposal for Hong Kong, which critics fear will be used to stamp out dissent in the city. Also read | China privately urged top Hong Kong officials to back national security law HSBC's announcement angered business and political circles in Britain, which returned the former colony to Chinese rule in 1997. Also read | Hong Kong marks one year of pro-democracy activism with fresh protests, 53 arrested The bank's decision flew in the face of convention because most multinationals attempt to steer clear of political intervention. However, HSBC's top Asia executive, Peter Wong, has signed a petition in support of the law. In addition, London-listed bank Standard Chartered -- which also focuses primarily on Asia -- sided with Beijing over the law. 'Cosy up' "The UK-listed banks have taken China's side as it is clear they want to cosy up to the second largest economy in the world," said CMC Markets analyst David Madden. HSBC insisted the Chinese measures would help "stabilise" Hong Kong and "revitalise" its economy. HSBC's move came after Hong Kong's pro-Beijing former leader Leung Chun-ying criticised the bank for not publicly supporting the law -- while profiting from its Chinese business interests. Asia remains critical for HSBC because the bank generates the majority of its profits in the region. The lender's chief executive Noel Quinn announced plans this year to axe 35,000 jobs as HSBC strengthens its focus on Asia and trims fat from less profitable activities in Europe and the United States. 'Synonymous with Hong Kong' HSBC -- or the Hong Kong & Shanghai Banking Corporation -- is closely linked to the history of the former British colony. The bank was founded in Hong Kong and Shanghai in 1865 -- but has been based in Britain since 1993. "HSBC is synonymous with Hong Kong – the website and bank cards feature the skyline, the HSBC building in Hong Kong is an iconic one, and the firm employs around 30,000 people in Hong Kong," said Emma Wall, head of investment analysis at broker Hargreaves Lansdown. "To those outside of the region it may therefore come as a surprise that HSBC, and other firms such as Standard Chartered, have put up no resistance to the recent divisive bill. "But ultimately, any corporate decision will be made with future revenues in mind -- and for HSBC half of their revenues come from Asia," she added. But the bank's decision has been met with anger from prominent politicians in Britain. Former Conservative Party leader Iain Duncan Smith said HSBC's support for China's national security law was a "grave error". Lisa Nandy and Anneliese Dodds, leading lawmakers in the main opposition Labour party, have meanwhile written to both banks to express concern. Last week's decision also risks HSBC's reputation on the global stage. US Secretary of State Mike Pompeo criticised the bank for backing the law, calling it a "cautionary tale" and warning of businesses' overreliance on Beijing. "That show of fealty seems to have earned HSBC little respect in Beijing, which continues to use the bank's business in China as political leverage against London," Pompeo said in a statement.

HSBC slammed in UK for backing China's Hong Kong law

HSBC has announced plans to lay off 35,000 employees. As the global economy stares at a slowdown - more companies could be planning job cuts.

Gravitas: 2020: The year of job cuts?

<a href="https://www.wionews.com/business-economy/hsbc-ceo-john-flint-resigns-as-it-faces-challenging-geopolitics-240704">HSBC Holdings PLC</a> said on Tuesday it would shed $100 billion in assets, shrink its investment bank and revamp its US&nbsp;and European businesses in a drastic overhaul that will mean 35,000 jobs cut over three years.

The bank, which has struggled to keep pace with leaner and more focused rivals, is seeking to become more competitive as it grapples with slowing growth in its major markets, the <a href="https://www.wionews.com/world/coronavirus-toll-leaps-past-1868-with-93-new-deaths-in-chinas-hubei-province-281239">coronavirus </a>epidemic, Britain's European Union exit and lower central bank interest rates.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/hsbc-ceo-john-flint-resigns-as-it-faces-challenging-geopolitics-240704">HSBC CEO John Flint resigns as bank faces 'challenging' geopolitics</a>

In the latest in a series of overhauls since the 2008 financial crisis, <a href="https://www.wionews.com/business-economy/hsbc-ceo-john-flint-resigns-as-it-faces-challenging-geopolitics-240704">HSBC </a>said it would merge its private banking and wealth businesses, axe European stock trading and cut US&nbsp;retail branches as it seeks to remove $4.5 billion in costs.

"The totality of this program is that our headcount is likely to go from 235,000 to closer to 200,000 over the next three years," Noel Quinn, interim chief executive, told Reuters.

The restructuring, one of the largest undertaken by a blue chip lender for more than a decade, will be partly managed through natural attrition as people leave the bank, he said.

Also read:&nbsp;<a href="https://www.wionews.com/world/coronavirus-toll-leaps-past-1868-with-93-new-deaths-in-chinas-hubei-province-281239">Coronavirus toll leaps past 1850 with 93 new deaths in China's Hubei province</a>

The UK-based bank, whose huge Asian operations are headquartered in Hong Kong, said the <a href="https://www.wionews.com/world/coronavirus-toll-leaps-past-1868-with-93-new-deaths-in-chinas-hubei-province-281239">coronavirus </a>epidemic had significantly impacted staff and customers. In the long run it could reduce revenue and cause bad loans to rise as supply chains are disrupted, Quinn said.

The virus has killed almost 1,900 people, overwhelmingly in mainland China, and infected more than 70,000, while its economic impact is spreading across the globe.

<a href="https://www.wionews.com/business-economy/us-government-fines-hsbc-1924-million-in-tax-evasion-case-267705">HSBC </a>veteran Quinn is auditioning for the permanent role of CEO, which the bank said in August would be announced within six to 12 months.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/us-government-fines-hsbc-1924-million-in-tax-evasion-case-267705">US government fines HSBC $192.4 million in tax evasion case</a>

"In one sense, they are doing the things that were obvious and had been called out by many, so it's good," Hugh Young, managing director at Aberdeen Asset Management Asia, one of HSBC's 20 largest investors said.

"Getting this done will require a fair amount of work, then we need to see how it settles down. Noel is doing a good job in very difficult circumstances," he added.

Europe's biggest bank by assets, which makes the bulk of its revenue in Asia, said profit before tax tumbled by a third to $13.35 billion in 2019, far below the average estimate of $20.03 billion from brokerages compiled by the bank.

That was due to $7.3 billion in write-offs linked to its global banking and markets and commercial banking business units in Europe.

In the United States, where the bank has underperformed for years, <a href="https://www.wionews.com/business-economy/hsbc-ceo-john-flint-resigns-as-it-faces-challenging-geopolitics-240704">HSBC </a>said it would close around a third of its 224 branches and target only international and wealthier clients.

The lender's shares were down 3.7 per cent at 568 pence at the London market open.

HSBC Holdings PLC said on Tuesday it would shed $100 billion in assets, shrink its investment bank and revamp its US and European businesses in a drastic overhaul that will mean 35,000 jobs cut over three years.

HSBC Holdings PLC said on Tuesday it would shed $100 billion in assets, shrink its investment bank and revamp its US and European businesses in a drastic overhaul that will mean 35,000 jobs cut over three years. The bank, which has struggled to keep pace with leaner and more focused rivals, is seeking to become more competitive as it grapples with slowing growth in its major markets, the coronavirus epidemic, Britain's European Union exit and lower central bank interest rates. Also read: HSBC CEO John Flint resigns as bank faces 'challenging' geopolitics In the latest in a series of overhauls since the 2008 financial crisis, HSBC said it would merge its private banking and wealth businesses, axe European stock trading and cut US retail branches as it seeks to remove $4.5 billion in costs. "The totality of this program is that our headcount is likely to go from 235,000 to closer to 200,000 over the next three years," Noel Quinn, interim chief executive, told Reuters. The restructuring, one of the largest undertaken by a blue chip lender for more than a decade, will be partly managed through natural attrition as people leave the bank, he said. Also read: Coronavirus toll leaps past 1850 with 93 new deaths in China's Hubei province The UK-based bank, whose huge Asian operations are headquartered in Hong Kong, said the coronavirus epidemic had significantly impacted staff and customers. In the long run it could reduce revenue and cause bad loans to rise as supply chains are disrupted, Quinn said. The virus has killed almost 1,900 people, overwhelmingly in mainland China, and infected more than 70,000, while its economic impact is spreading across the globe. HSBC veteran Quinn is auditioning for the permanent role of CEO, which the bank said in August would be announced within six to 12 months. Also read: US government fines HSBC $192.4 million in tax evasion case "In one sense, they are doing the things that were obvious and had been called out by many, so it's good," Hugh Young, managing director at Aberdeen Asset Management Asia, one of HSBC's 20 largest investors said. "Getting this done will require a fair amount of work, then we need to see how it settles down. Noel is doing a good job in very difficult circumstances," he added. Europe's biggest bank by assets, which makes the bulk of its revenue in Asia, said profit before tax tumbled by a third to $13.35 billion in 2019, far below the average estimate of $20.03 billion from brokerages compiled by the bank. That was due to $7.3 billion in write-offs linked to its global banking and markets and commercial banking business units in Europe. In the United States, where the bank has underperformed for years, HSBC said it would close around a third of its 224 branches and target only international and wealthier clients. The lender's shares were down 3.7 per cent at 568 pence at the London market open.

HSBC to slash investment bank, 35,000 jobs in strategy overhaul

In a briefing received from the <a href="https://www.wionews.com/business-economy/hsbc-begins-year-with-hong-kong-branches-closed-vandalised-271637">HSBC</a> bank on Friday, the overnight services were said to be suspended at 19 ATM clusters cited in&nbsp;different areas of&nbsp;Hong Kong, two days after its branches and ATMs were&nbsp;vandalised and flamed during <a href="https://www.wionews.com/world/hong-kong-around-400-arrested-in-new-years-day-unrest-271484">anti-government protests</a>.&nbsp;&nbsp;

Hong Kong is the bank's single most important market, accounting for just over half of its $12.5 billion pre-tax profits in the first half of 2019.

Until mid-December, HSBC had largely escaped direct involvement in the often violent anti-government protests that have shaken Hong Kong for more than six months even as other companies with perceived links to Beijing saw premises vandalised.

Since then, HSBC has drawn the ire of some protesters who accuse it of being complicit inaction by the authorities against activists trying to raise money to support their campaign.

HSBC strongly denies any connection.

The 19 groups of ATM machines are located in common protest hotspots. As a precautionary measure, they will be closed from 8 p.m. to 6 a.m. on Fridays, Saturdays, Sundays, the days before public holidays and on public holidays until further notice, the bank said in a statement.

HSBC on Thursday closed two branches and seven indoor <a href="https://www.wionews.com/world/desperate-hong-kong-protesters-explore-sewers-in-campus-escape-bid-263209">ATM clusters</a> after they were vandalised during anti-government protests on New Year's Day and Christmas Eve.

The famous pair of lions that guard its city centre headquarters were daubed with graffiti and briefly set alight after being doused in a flammable liquid.

In a briefing received from the HSBC bank on Friday, the overnight services were said to be suspended at 19 ATM clusters cited in different areas of Hong Kong, two days after its branches and ATMs were vandalised and flamed during anti-government protests.

In a briefing received from the HSBC bank on Friday, the overnight services were said to be suspended at 19 ATM clusters cited in different areas of Hong Kong, two days after its branches and ATMs were vandalised and flamed during anti-government protests. Hong Kong is the bank's single most important market, accounting for just over half of its $12.5 billion pre-tax profits in the first half of 2019. Until mid-December, HSBC had largely escaped direct involvement in the often violent anti-government protests that have shaken Hong Kong for more than six months even as other companies with perceived links to Beijing saw premises vandalised. Since then, HSBC has drawn the ire of some protesters who accuse it of being complicit inaction by the authorities against activists trying to raise money to support their campaign. HSBC strongly denies any connection. The 19 groups of ATM machines are located in common protest hotspots. As a precautionary measure, they will be closed from 8 p.m. to 6 a.m. on Fridays, Saturdays, Sundays, the days before public holidays and on public holidays until further notice, the bank said in a statement. HSBC on Thursday closed two branches and seven indoor ATM clusters after they were vandalised during anti-government protests on New Year's Day and Christmas Eve. The famous pair of lions that guard its city centre headquarters were daubed with graffiti and briefly set alight after being doused in a flammable liquid.

HSBC suspends overnight services at 19 ATM clusters in Hong Kong after branches vandalised

<a href="https://www.wionews.com/business-economy/us-government-fines-hsbc-1924-million-in-tax-evasion-case-267705">HSBC</a>&nbsp;is being drawn into&nbsp;Hong&nbsp;Kong's political turmoil with protesters attacking some of its&nbsp;branches&nbsp;and graffiti daubed on the famous pair of lions that guard its city-centre headquarters.

Hong&nbsp;Kong&nbsp;is the bank's single most important market, accounting for just over half of its $12.5 billion pre-tax profits in the first half of 2019, though with the <a href="https://www.wionews.com/world/hong-kong-protests-severely-challenged-one-country-two-systems-principle-xi-in-his-new-year-address-271325">protests</a> tipping&nbsp;Hong&nbsp;Kong's economy into recession,&nbsp;HSBC&nbsp;and its peers are expected to take a financial hit.

Until now,&nbsp;HSBC&nbsp;had largely escaped direct involvement in the often-violent anti-government protests that have shaken&nbsp;Hong&nbsp;Kong&nbsp;for more than six months even as other companies with perceived links to <a href="https://www.wionews.com/business-economy/airbus-beats-goal-with-863-jet-deliveries-in-2019-ousts-boeing-from-top-spot-271445">Beijing</a> have seen premises&nbsp;vandalised, including <a href="https://www.wionews.com/world/hong-kong-unrest-protesters-vow-to-keep-fighting-police-fire-tear-gas-271427">Bank of China</a> (Hong&nbsp;Kong),&nbsp;Hong&nbsp;Kong's second largest bank behind&nbsp;HSBC.

But more recently,&nbsp;HSBC&nbsp;has drawn the ire of some protesters who accuse it of being complicit in action by the authorities against activists trying to raise money to support their campaign.

Protesters link the bank's closure in November of an account held by a group called Spark Alliance, which helps pay protesters' legal costs, to the December arrest of four Spark Alliance members on money laundering charges.

HSBC&nbsp;has strongly denied any connection.

"People are angry because they feel that&nbsp;HSBC&nbsp;has stopped money getting to the protesters," one protester said on Wednesday, of the decision to close the account as he stood in a group taking photos of the damaged lions.

HSBC&nbsp;said in a statement after the arrests that the decision to close the account was "in accordance to international regulatory standards".

"Our decision is completely unrelated to the&nbsp;Hong&nbsp;Kong&nbsp;Police’s <a href="https://www.wionews.com/world/hong-kong-around-400-arrested-in-new-years-day-unrest-271484">arrest</a> of the four individuals on 19 December 2019.&nbsp;We&nbsp;closed&nbsp;the account in November 2019 following direct instruction from the customer," the bank said.

It is highly unusual for&nbsp;HSBC&nbsp;to comment on individual cases.

Two&nbsp;HSBC&nbsp;branches&nbsp;and seven indoor ATM clusters were&nbsp;closed&nbsp;on Thursday, the first working day of the&nbsp;year.

Some had their windows smashed and "support Spark Alliance" was spray painted on their walls during a New&nbsp;Year's Day anti-government protest march. Others were damaged during protests on Christmas Eve.

Also Watch:&nbsp;Hong Kong kicks off 2020 fresh protests

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The two lions were daubed with graffiti and briefly set alight after being doused in a flammable liquid.

HSBC&nbsp;said on Thursday initial cleaning of the lions had begun.

"We are engaging conservation experts to advise us on the professional restoration required and the process can take time," the bank said in a statement.

More than 90 per cent&nbsp;of the $4.4 billion generated by&nbsp;HSBC's retail banking and wealth management unit in the six months to last June, came from&nbsp;<a href="https://www.wionews.com/opinions/last-year-was-marked-by-defiance-dissent-2020-is-likely-to-be-no-different-271611">Hong&nbsp;Kong</a>.

HSBC&nbsp;has also deployed billions of dollars in China’s southern Pearl River Delta region, adjacent to&nbsp;Hong&nbsp;Kong, and has expanded its services in the world’s second largest economy.

Beijing plans to integrate the Pearl River Delta and&nbsp;Hong&nbsp;Kong&nbsp;and <a href="https://www.wionews.com/world/chinese-president-xi-jinping-praises-macau-for-choosing-unity-and-negotiation-over-contention-269302">Macau</a> to create an economic powerhouse under its Greater Bay Area Initiative.

HSBC's entanglement in the protests underlines the tightrope that companies have had to walk since the protests got going in June in response to a now-withdrawn bill that would have allowed extraditions to mainland China, where courts are controlled by the Communist Party.

The demonstrations have evolved into a broad <a href="https://www.wionews.com/world/hong-kong-readies-for-new-year-democracy-rally-271378">pro-democracy movement</a>.

"Clearly, there is a fine line for management to draw between customers and the Chinese authorities,” said a head of corporate governance at a UK-based asset manager and&nbsp;HSBC&nbsp;shareholder.

Other&nbsp;Hong&nbsp;Kong&nbsp;companies have been damaged by being perceived to be too supportive of the protests.

<a href="https://www.wionews.com/business-economy/seven-hong-kong-airlines-planes-impounded-by-authority-268722">Cathay Pacific Airways</a> was forced by Beijing to suspend staff involved in the protests, and chief executive Rupert Hogg and his top deputy resigned in August amid the turmoil.

HSBC&nbsp;has previously been targeted by supporters of Beijing.

Users of China's Weibo social media platform shared screenshots last&nbsp;year&nbsp;of an&nbsp;HSBC&nbsp;employee's Facebook posts supporting the protests. The posts urged readers to complain to&nbsp;HSBC&nbsp;management.

"Businesses now have to consider how three different groups will react to their decisions: The Chinese government,&nbsp;Hong&nbsp;Kong&nbsp;protesters, and Chinese consumers," said Kent Kedl, head of Control Risks' Greater China practice.

HSBC is being drawn into Hong Kong's political turmoil with protesters attacking some of its branches and graffiti daubed on the famous pair of lions that guard its city-centre headquarters.

HSBC is being drawn into Hong Kong's political turmoil with protesters attacking some of its branches and graffiti daubed on the famous pair of lions that guard its city-centre headquarters. Hong Kong is the bank's single most important market, accounting for just over half of its $12.5 billion pre-tax profits in the first half of 2019, though with the protests tipping Hong Kong's economy into recession, HSBC and its peers are expected to take a financial hit. Until now, HSBC had largely escaped direct involvement in the often-violent anti-government protests that have shaken Hong Kong for more than six months even as other companies with perceived links to Beijing have seen premises vandalised, including Bank of China (Hong Kong), Hong Kong's second largest bank behind HSBC. But more recently, HSBC has drawn the ire of some protesters who accuse it of being complicit in action by the authorities against activists trying to raise money to support their campaign. Protesters link the bank's closure in November of an account held by a group called Spark Alliance, which helps pay protesters' legal costs, to the December arrest of four Spark Alliance members on money laundering charges. HSBC has strongly denied any connection. "People are angry because they feel that HSBC has stopped money getting to the protesters," one protester said on Wednesday, of the decision to close the account as he stood in a group taking photos of the damaged lions. HSBC said in a statement after the arrests that the decision to close the account was "in accordance to international regulatory standards". "Our decision is completely unrelated to the Hong Kong Police’s arrest of the four individuals on 19 December 2019. We closed the account in November 2019 following direct instruction from the customer," the bank said. It is highly unusual for HSBC to comment on individual cases. Two HSBC branches and seven indoor ATM clusters were closed on Thursday, the first working day of the year. Some had their windows smashed and "support Spark Alliance" was spray painted on their walls during a New Year's Day anti-government protest march. Others were damaged during protests on Christmas Eve. Also Watch: Hong Kong kicks off 2020 fresh protests × The two lions were daubed with graffiti and briefly set alight after being doused in a flammable liquid. HSBC said on Thursday initial cleaning of the lions had begun. "We are engaging conservation experts to advise us on the professional restoration required and the process can take time," the bank said in a statement. More than 90 per cent of the $4.4 billion generated by HSBC's retail banking and wealth management unit in the six months to last June, came from Hong Kong. HSBC has also deployed billions of dollars in China’s southern Pearl River Delta region, adjacent to Hong Kong, and has expanded its services in the world’s second largest economy. Beijing plans to integrate the Pearl River Delta and Hong Kong and Macau to create an economic powerhouse under its Greater Bay Area Initiative. HSBC's entanglement in the protests underlines the tightrope that companies have had to walk since the protests got going in June in response to a now-withdrawn bill that would have allowed extraditions to mainland China, where courts are controlled by the Communist Party. The demonstrations have evolved into a broad pro-democracy movement. "Clearly, there is a fine line for management to draw between customers and the Chinese authorities,” said a head of corporate governance at a UK-based asset manager and HSBC shareholder. Other Hong Kong companies have been damaged by being perceived to be too supportive of the protests. Cathay Pacific Airways was forced by Beijing to suspend staff involved in the protests, and chief executive Rupert Hogg and his top deputy resigned in August amid the turmoil. HSBC has previously been targeted by supporters of Beijing. Users of China's Weibo social media platform shared screenshots last year of an HSBC employee's Facebook posts supporting the protests. The posts urged readers to complain to HSBC management. "Businesses now have to consider how three different groups will react to their decisions: The Chinese government, Hong Kong protesters, and Chinese consumers," said Kent Kedl, head of Control Risks' Greater China practice.

HSBC begins year with Hong Kong branches closed, vandalised

US Justice Department said today that <a href="https://www.wionews.com/business-economy/hsbc-announces-new-heads-of-investment-banking-division-267192">Switzerland's HSBC</a> had "conspired with US account holders to conceal assets abroad and evade taxes" and had agreed to pay $192.4 million in unpaid taxes, improper fees and fines.

"HSBC Switzerland conspired with US account holders to conceal assets abroad and evade taxes that every American must pay," Stuart Goldberg, acting chief of the department's tax division, said in a statement.&nbsp;

The bank essentially helped wealthy Americans evade taxes, the US Justice Department investigation revealed.

"Banks, asset managers and other financial firms enable such crimes -- and we will hold these institutions to account, right along with the taxpayers that use them to facilitate and disguise illegal activities," Goldberg added. 
&nbsp; 
"Some HSBC Switzerland bankers assisted clients in closing their accounts in a manner that continued to conceal their offshore assets," US prosecutors said in a statement.

According to the Justice Department, In 2002, HSBC had over 720 undeclared US client relationships with a total value of more than $800 million which reached $1.3 billion over the next five years.

The bank will now have to demonstrate "good conduct" under the settlement deal with the US government, however, the Justice Department said in a statement that it does not mean individuals will not be prosecuted separately.

After the US decision, Chief Executive Alex Classen said: "Today the Swiss subsidiary operates under new management, we have strengthened our compliance function, enhanced our control framework and put in place a comprehensive client tax transparency policy."

US Justice Department said today that Switzerland's HSBC had "conspired with US account holders to conceal assets abroad and evade taxes" and had agreed to pay $192.

US Justice Department said today that Switzerland's HSBC had "conspired with US account holders to conceal assets abroad and evade taxes" and had agreed to pay $192.4 million in unpaid taxes, improper fees and fines. "HSBC Switzerland conspired with US account holders to conceal assets abroad and evade taxes that every American must pay," Stuart Goldberg, acting chief of the department's tax division, said in a statement. The bank essentially helped wealthy Americans evade taxes, the US Justice Department investigation revealed. "Banks, asset managers and other financial firms enable such crimes -- and we will hold these institutions to account, right along with the taxpayers that use them to facilitate and disguise illegal activities," Goldberg added. "Some HSBC Switzerland bankers assisted clients in closing their accounts in a manner that continued to conceal their offshore assets," US prosecutors said in a statement. According to the Justice Department, In 2002, HSBC had over 720 undeclared US client relationships with a total value of more than $800 million which reached $1.3 billion over the next five years. The bank will now have to demonstrate "good conduct" under the settlement deal with the US government, however, the Justice Department said in a statement that it does not mean individuals will not be prosecuted separately. After the US decision, Chief Executive Alex Classen said: "Today the Swiss subsidiary operates under new management, we have strengthened our compliance function, enhanced our control framework and put in place a comprehensive client tax transparency policy."

US government fines HSBC $192.4 million in tax evasion case

<a href="https://www.wionews.com/business-economy/hsbc-ceo-john-flint-resigns-as-it-faces-challenging-geopolitics-240704">HSBC</a>&nbsp;has named Georges Elhedery and Greg Guyett as co-heads of the global banking and markets division, which contains the lender's investment banking business.

They replace Samir Assaf who will become chairman of corporate and institutional banking.

Guyett now heads banking while Elhedery runs the markets business. The two will be tasked with turning around a part of HSBC's global business that has underperformed in recent years.

The moves are among several senior management changes as Europe's biggest bank prepares to unveil a new strategy under interim Chief Executive Noel Quinn, who replaced John Flint in August.

The bank said on Monday Andy Maguire, chief operating officer, and Mark Moses, chief risk officer would also leave.

HSBC has named Georges Elhedery and Greg Guyett as co-heads of the global banking and markets division, which contains the lender's investment banking business. They replace Samir Assaf who will become chairman of corporate and institutional banking.

HSBC has named Georges Elhedery and Greg Guyett as co-heads of the global banking and markets division, which contains the lender's investment banking business. They replace Samir Assaf who will become chairman of corporate and institutional banking. Guyett now heads banking while Elhedery runs the markets business. The two will be tasked with turning around a part of HSBC's global business that has underperformed in recent years. The moves are among several senior management changes as Europe's biggest bank prepares to unveil a new strategy under interim Chief Executive Noel Quinn, who replaced John Flint in August. The bank said on Monday Andy Maguire, chief operating officer, and Mark Moses, chief risk officer would also leave.

HSBC announces new heads of investment banking division

The Canadian attorney general has filed affidavits asserting that information identifying Huawei Chief Financial Officer Meng Wanzhou's electronic devices was not shared with the United States Federal Bureau of Investigation (FBI) during her December 2018 arrest in Vancouver, court documents showed on Thursday.

Meng, 47, is charged in the United States with bank fraud and she is accused of misleading HSBC Holdings PLC&nbsp;about Huawei Technologies Co Ltd's business in Iran, which is under US sanctions. Meng has said she is innocent and is fighting extradition.

In early October Meng and her lawyers asserted that members of the Royal Canadian Mounted Police (RCMP) had illegally shared sensitive identifying information about her electronic devices with the FBI.

"The applicant's allegation that the information was shared by the RCMP with the FBI is unfounded," lawyers for Canada's attorney general said in court documents released to media on Thursday.

Huawei was not available for immediate comment.

Canada's attorney general filed eight affidavits this month stating that members of the FBI and RCMP were discussing what information would be necessary in the case of a mutual legal assistance treaty request is made by the United States, which is made by one country to another when requiring the exchange of information to enforce laws.

The RCMP did not share the information, the affidavits written by past and present members of the police force stated.

The lawyers for Canada's attorney general added in their letter that the information being gathered but not shared showed a "good faith attempt" by the RCMP "to ensure that any sharing would be done in accordance with the law."

Meng and her lawyers returned to a British Columbia court this month, requesting additional documents pertaining to Meng's arrest at the Vancouver International Airport at the request of the United States on Dec. 1, 2018.

Meng's argument is part of a broader strategy to prove that her arrest was illegal and violated her rights according to the Canadian Charter of Rights and Freedoms.

If Canadian officials abused their authority, her lawyers say, the extradition proceedings should be halted. The official extradition trial will begin in January 2020.

"In any event, the allegations could not result in the most drastic of remedies, a stay of proceedings," the lawyers for the Canadian attorney general said.

The Canadian attorney general has filed affidavits asserting that information identifying Huawei Chief Financial Officer Meng Wanzhou's electronic devices was not shared with the United States Federal Bureau of Investigation (FBI) during her December 2018 arrest in Vancouver, court documents showed on Thursday.

The Canadian attorney general has filed affidavits asserting that information identifying Huawei Chief Financial Officer Meng Wanzhou's electronic devices was not shared with the United States Federal Bureau of Investigation (FBI) during her December 2018 arrest in Vancouver, court documents showed on Thursday. Meng, 47, is charged in the United States with bank fraud and she is accused of misleading HSBC Holdings PLC about Huawei Technologies Co Ltd's business in Iran, which is under US sanctions. Meng has said she is innocent and is fighting extradition. In early October Meng and her lawyers asserted that members of the Royal Canadian Mounted Police (RCMP) had illegally shared sensitive identifying information about her electronic devices with the FBI. "The applicant's allegation that the information was shared by the RCMP with the FBI is unfounded," lawyers for Canada's attorney general said in court documents released to media on Thursday. Huawei was not available for immediate comment. Canada's attorney general filed eight affidavits this month stating that members of the FBI and RCMP were discussing what information would be necessary in the case of a mutual legal assistance treaty request is made by the United States, which is made by one country to another when requiring the exchange of information to enforce laws. The RCMP did not share the information, the affidavits written by past and present members of the police force stated. The lawyers for Canada's attorney general added in their letter that the information being gathered but not shared showed a "good faith attempt" by the RCMP "to ensure that any sharing would be done in accordance with the law." Meng and her lawyers returned to a British Columbia court this month, requesting additional documents pertaining to Meng's arrest at the Vancouver International Airport at the request of the United States on Dec. 1, 2018. Meng's argument is part of a broader strategy to prove that her arrest was illegal and violated her rights according to the Canadian Charter of Rights and Freedoms. If Canadian officials abused their authority, her lawyers say, the extradition proceedings should be halted. The official extradition trial will begin in January 2020. "In any event, the allegations could not result in the most drastic of remedies, a stay of proceedings," the lawyers for the Canadian attorney general said.

Canada denies sharing Huawei CFO Meng's devices details with FBI: Report

Reports claimed that HSBC to cut down up to 10,000 top-level jobs for cost-cutting. Watch this video to know more.

Reports: HSBC to cut down upto 10,000 top level jobs for cost-cutting

A technical glitch delayed the start of trading on Friday on the UK blue-chip FTSE 100 and midcap stock indexes for almost two hours in what was the longest outage at one of the world's top bourses in eight years.

<a href="https://www.wionews.com/business-economy/london-stock-exchange-in-talks-to-buy-refinitiv-for-27-billion-238782">The London Stock Exchange</a> suffered a "technical software issue", which postponed the opening of trading until 0840 GMT, a spokeswoman said in an email. The markets normally open at 0700 GMT.

In a statement on its website, it said it was still investigating the issue.

The fault affected hundreds of shares in some of the UK's largest companies, including Shell, Unilever and HSBC, and BHP Group, worth a total of $2.8 trillion.

Traders were frustrated by the latest outage coming during a hectic week on global financial markets, hit by worries about a US recession and the US-China trade spat.

"Investors would have been yearning for a quiet Friday after a week of turmoil for the markets driven by recession fears," said AJ Bell investment director Russ Mould.

"It looked like just such a peaceful interlude was on the cards until (the LSE's) technical issues."

A large number of market participants were also away on holiday, which may have limited the impact of the failure.

Paul Mumford, a fund manager at Cavendish Asset Management said it would be a "major embarrassment" for the LSE amid stiffening competition, rising costs and greater regulation among exchange operators.

LSE shares listed on the FTSE 100 were up 0.9 per cent in early deals, in line with the broader FTSE 100.

This is the second outage at the LSE, which handles about 5 billion pounds ($6.1 billion) worth of volume each day, in just over a year.

In June 2018, the opening auction was delayed due to a technical fault, but trading resumed after an hour.

Before that, the market was shut until lunchtime one day in February 2011.

Reuters News' parent Thomson Reuters holds a 45 per cent stake in financial data and news provider Refinitiv.&nbsp;

Thomson Reuters will own 15 per cent in LSE after the proposed deal closes.

A technical glitch delayed the start of trading on Friday on the UK blue-chip FTSE 100 and midcap stock indexes for almost two hours in what was the longest outage at one of the world's top bourses in eight years.

A technical glitch delayed the start of trading on Friday on the UK blue-chip FTSE 100 and midcap stock indexes for almost two hours in what was the longest outage at one of the world's top bourses in eight years. The London Stock Exchange suffered a "technical software issue", which postponed the opening of trading until 0840 GMT, a spokeswoman said in an email. The markets normally open at 0700 GMT. In a statement on its website, it said it was still investigating the issue. The fault affected hundreds of shares in some of the UK's largest companies, including Shell, Unilever and HSBC, and BHP Group, worth a total of $2.8 trillion. Traders were frustrated by the latest outage coming during a hectic week on global financial markets, hit by worries about a US recession and the US-China trade spat. "Investors would have been yearning for a quiet Friday after a week of turmoil for the markets driven by recession fears," said AJ Bell investment director Russ Mould. "It looked like just such a peaceful interlude was on the cards until (the LSE's) technical issues." A large number of market participants were also away on holiday, which may have limited the impact of the failure. Paul Mumford, a fund manager at Cavendish Asset Management said it would be a "major embarrassment" for the LSE amid stiffening competition, rising costs and greater regulation among exchange operators. LSE shares listed on the FTSE 100 were up 0.9 per cent in early deals, in line with the broader FTSE 100. This is the second outage at the LSE, which handles about 5 billion pounds ($6.1 billion) worth of volume each day, in just over a year. In June 2018, the opening auction was delayed due to a technical fault, but trading resumed after an hour. Before that, the market was shut until lunchtime one day in February 2011. Reuters News' parent Thomson Reuters holds a 45 per cent stake in financial data and news provider Refinitiv. Thomson Reuters will own 15 per cent in LSE after the proposed deal closes.

London Stock Exchange, FTSE 100 suffers the longest outage in years

HSBC on Monday announced its Group Chief Executive John Flint had stepped down after less than two years on the job, as the banking giant revealed decent first-half profits but warned it faced "challenging" geopolitics.

The surprise announcement came shortly before an earlier than expected results release in which the London-headquartered behemoth reported pre-tax profit was up 15.8 per cent at $12.4 billion for the first half of the year.

Flint, who has spent three decades at HSBC, was keen to lower costs with the Asia-focused bank facing the double uncertainties caused by both the US-China trade war and Britain's impending departure from the European Union.

HSBC gave no specific reason for Flint's sudden departure, but said it needed a change at the top as it warned investors of difficult times ahead.&nbsp;

"In the increasingly complex and challenging global environment in which the bank operates, the board believes a change is needed to meet the challenges that we face and to capture the very significant opportunities before us," Group Chairman Mark Tucker said.

Flint, 51, said: "I have agreed with the board that today's good interim results indicate that this is the right time for change, both for me and the bank."

HSBC said it would look both internally and externally for a new leader and that Noel Quinn, head of the commercial banking division, will be interim CEO in the meantime.

"Although not carrying out his day-to-day duties after today, he (Flint) remains available to assist HSBC with the transition," the bank said in a statement.&nbsp;

The move comes just weeks after its US chief Patrick Burke retired following a reorganisation of its North American business.

Flint's departure came despite the good results announced on Tuesday with pre-tax profit of $6.2 billion for the second quarter.&nbsp;

The bank also said it would soon begin a buyback of up to $1 billion, according to a statement on the Hong Kong Stock Exchange.

But there are headwinds on the horizon.&nbsp;

In Asia -- which is acutely vulnerable to the ongoing trade war between Washington and Beijing -- the bank said the outlook "is less certain". 
Brexit was also weighing on the bank's future.&nbsp;

"The outlook has changed. Interest rates in the US dollar bloc are now expected to fall rather than rise, and geopolitical issues could impact a significant number of our major markets," the bank said.&nbsp;

"In the near term, the nature and impact of the UK's departure from the European Union remain highly uncertain," it added.

"We are managing operating expenses and investment spending in line with the increased risks to revenue," the Asia-focused firm said.

HSBC on Monday announced its Group Chief Executive John Flint had stepped down after less than two years on the job, as the banking giant revealed decent first-half profits but warned it faced "challenging" geopolitics.

HSBC on Monday announced its Group Chief Executive John Flint had stepped down after less than two years on the job, as the banking giant revealed decent first-half profits but warned it faced "challenging" geopolitics. The surprise announcement came shortly before an earlier than expected results release in which the London-headquartered behemoth reported pre-tax profit was up 15.8 per cent at $12.4 billion for the first half of the year. Flint, who has spent three decades at HSBC, was keen to lower costs with the Asia-focused bank facing the double uncertainties caused by both the US-China trade war and Britain's impending departure from the European Union. HSBC gave no specific reason for Flint's sudden departure, but said it needed a change at the top as it warned investors of difficult times ahead. "In the increasingly complex and challenging global environment in which the bank operates, the board believes a change is needed to meet the challenges that we face and to capture the very significant opportunities before us," Group Chairman Mark Tucker said. Flint, 51, said: "I have agreed with the board that today's good interim results indicate that this is the right time for change, both for me and the bank." HSBC said it would look both internally and externally for a new leader and that Noel Quinn, head of the commercial banking division, will be interim CEO in the meantime. "Although not carrying out his day-to-day duties after today, he (Flint) remains available to assist HSBC with the transition," the bank said in a statement. The move comes just weeks after its US chief Patrick Burke retired following a reorganisation of its North American business. Flint's departure came despite the good results announced on Tuesday with pre-tax profit of $6.2 billion for the second quarter. The bank also said it would soon begin a buyback of up to $1 billion, according to a statement on the Hong Kong Stock Exchange. But there are headwinds on the horizon. In Asia -- which is acutely vulnerable to the ongoing trade war between Washington and Beijing -- the bank said the outlook "is less certain". Brexit was also weighing on the bank's future. "The outlook has changed. Interest rates in the US dollar bloc are now expected to fall rather than rise, and geopolitical issues could impact a significant number of our major markets," the bank said. "In the near term, the nature and impact of the UK's departure from the European Union remain highly uncertain," it added. "We are managing operating expenses and investment spending in line with the increased risks to revenue," the Asia-focused firm said.

HSBC CEO John Flint resigns as bank faces 'challenging' geopolitics

<a href="https://www.wionews.com/india-news/switzerland-steps-up-process-to-share-banking-information-11-indians-get-notices-in-a-day-221821">Reinsurance group Swiss Re</a> has suspended plans for a &nbsp;4.1 billion dollar initial public offering (IPO) of British life insurer ReAssure, which was set to start trading in London on Thursday, citing weak demand from institutional investors.

The cancellation comes as global share listings hit their lowest level in three years in the first six months, with a prolonged slowdown in Europe.

Listings that did go ahead, such as Volkswagen's truckmaker Traton, were cut in volume and priced at the low end of expectations.

Reuters reported on Wednesday that Swiss Re was considering postponing or restructuring the London listing due to limited investor appetite.

A Swiss Re spokeswoman said the Zurich-based group was not at present considering re-starting the IPO process for ReAssure this year but long-term options remained open.

Chief Financial Officer John Dacey said the group still intended to reduce its ownership in ReAssure.

"There has been no pressing need for Swiss Re to divest shares at a price that we consider to be unrepresentative of ReAssure's value and prospects," he added.

Swiss Re shares were indicated at 0.4 per cent lower in pre-market activity.

Under the flotation plans, Swiss Re would have cut its stake in ReAssure to below 50 per cent from 75 per cent now. Japan's MS&amp;AD Insurance Group Holdings intended to keep its holding at 25 per cent.

Swiss Re had set a price range of 2.80 to 3.30 pounds per share for ReAssure, Britain's sixth-largest life insurer, valuing it at up to 3.3 billion pounds ($4.14 billion).

Swiss Re wanted to spin off ReAssure to put the business under a more favourable regulatory regime and give it easier access to capital to fund its expansion.

It hired Credit Suisse, Morgan Stanley, and UBS to work as joint global coordinators, while BNP Paribas and HSBC acted as joint book runners.

($1 = 0.7980 pounds)

Reinsurance group Swiss Re has suspended plans for a 4.1 billion dollar initial public offering (IPO) of British life insurer ReAssure, which was set to start trading in London on Thursday, citing weak demand from institutional investors.

Reinsurance group Swiss Re has suspended plans for a 4.1 billion dollar initial public offering (IPO) of British life insurer ReAssure, which was set to start trading in London on Thursday, citing weak demand from institutional investors. The cancellation comes as global share listings hit their lowest level in three years in the first six months, with a prolonged slowdown in Europe. Listings that did go ahead, such as Volkswagen's truckmaker Traton, were cut in volume and priced at the low end of expectations. Reuters reported on Wednesday that Swiss Re was considering postponing or restructuring the London listing due to limited investor appetite. A Swiss Re spokeswoman said the Zurich-based group was not at present considering re-starting the IPO process for ReAssure this year but long-term options remained open. Chief Financial Officer John Dacey said the group still intended to reduce its ownership in ReAssure. "There has been no pressing need for Swiss Re to divest shares at a price that we consider to be unrepresentative of ReAssure's value and prospects," he added. Swiss Re shares were indicated at 0.4 per cent lower in pre-market activity. Under the flotation plans, Swiss Re would have cut its stake in ReAssure to below 50 per cent from 75 per cent now. Japan's MS&AD Insurance Group Holdings intended to keep its holding at 25 per cent. Swiss Re had set a price range of 2.80 to 3.30 pounds per share for ReAssure, Britain's sixth-largest life insurer, valuing it at up to 3.3 billion pounds ($4.14 billion). Swiss Re wanted to spin off ReAssure to put the business under a more favourable regulatory regime and give it easier access to capital to fund its expansion. It hired Credit Suisse, Morgan Stanley, and UBS to work as joint global coordinators, while BNP Paribas and HSBC acted as joint book runners. ($1 = 0.7980 pounds)

Swiss Re puts off $4 billion ReAssure IPO amid weak demand

<a href="http://www.wionews.com/business-economy/oil-prices-edge-up-on-supply-cuts-but-weakening-economic-outlook-caps-gains-190325">Oil prices rose</a> by around 1 per cent on Tuesday amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook may soon weigh on growth in fuel demand.

International Brent crude oil futures were at $59.62 per barrel at 0740 GMT, up 63 cents, or 1.1 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $51.14 per barrel, up 63 cents, or 1.3 per cent.

"OPEC-led cuts and declining US rig counts have bolstered market sentiment in the New Year," Singapore-based brokerage Phillip Futures said on Tuesday.

The Middle East-dominated producer club of the <a href="http://www.wionews.com/business-economy/oil-prices-rise-over-china-us-trade-talks-opec-cuts-188292">Organisation of the Petroleum Exporting Countries (OPEC)</a> and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut.

In the United States, the amount of rigs looking for new oil production has dropped from a 2018-peak of 888 to a still high number of 873 in early 2019, pointing to a potential dent in production growth which was at more than 2 million barrels per day (bpd) last year, bringing American crude output to a record 11.7 million bpd.

Meanwhile, the United States last November re-imposed sanctions against Iran's oil exports. Although Washington granted sanctions waivers to Iran's biggest oil customers, mostly in Asia, the Middle Eastern country's exports have plummeted since.

"Iranian exports have already fallen sharply and are likely to remain at around 1.3 million barrels per day (bpd) in 2019, 1.3 million bpd down vs their 1H18 average," HSBC said in its 2019 oil market outlook.

However, Japan expects to restart oil imports from Iran within this month, the Nikkei business daily reported on Tuesday, with some Japanese banks notifying customers they will resume transactions for oil purchases.

South Korea is already expecting to receive Iranian oil imports in January after a four-month interruption.

On the demand side, an economic slowdown is looming over oil and financial markets.

China's National Development and Reform Commission (NDRC) on Tuesday signalled it may roll out more fiscal stimulus measures to stem a further economic slowdown.

Tuesday's oil price increases came after crude futures fell by more than 2 per cent the previous session, dragged down by weak Chinese trade data which pointed to a global economic slowdown.

"The outlook for the global economy continues to be highly uncertain," HSBC said. The bank said it had cut its average 2019 Brent crude oil price forecast by $16 per barrel, to $64 per barrel, citing surging US production and an "increasingly uncertain demand backdrop".

Oil prices rose by around 1 per cent on Tuesday amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook may soon weigh on growth in fuel demand.

Oil prices rose by around 1 per cent on Tuesday amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook may soon weigh on growth in fuel demand. International Brent crude oil futures were at $59.62 per barrel at 0740 GMT, up 63 cents, or 1.1 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $51.14 per barrel, up 63 cents, or 1.3 per cent. "OPEC-led cuts and declining US rig counts have bolstered market sentiment in the New Year," Singapore-based brokerage Phillip Futures said on Tuesday. The Middle East-dominated producer club of the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut. In the United States, the amount of rigs looking for new oil production has dropped from a 2018-peak of 888 to a still high number of 873 in early 2019, pointing to a potential dent in production growth which was at more than 2 million barrels per day (bpd) last year, bringing American crude output to a record 11.7 million bpd. Meanwhile, the United States last November re-imposed sanctions against Iran's oil exports. Although Washington granted sanctions waivers to Iran's biggest oil customers, mostly in Asia, the Middle Eastern country's exports have plummeted since. "Iranian exports have already fallen sharply and are likely to remain at around 1.3 million barrels per day (bpd) in 2019, 1.3 million bpd down vs their 1H18 average," HSBC said in its 2019 oil market outlook. However, Japan expects to restart oil imports from Iran within this month, the Nikkei business daily reported on Tuesday, with some Japanese banks notifying customers they will resume transactions for oil purchases. South Korea is already expecting to receive Iranian oil imports in January after a four-month interruption. On the demand side, an economic slowdown is looming over oil and financial markets. China's National Development and Reform Commission (NDRC) on Tuesday signalled it may roll out more fiscal stimulus measures to stem a further economic slowdown. Tuesday's oil price increases came after crude futures fell by more than 2 per cent the previous session, dragged down by weak Chinese trade data which pointed to a global economic slowdown. "The outlook for the global economy continues to be highly uncertain," HSBC said. The bank said it had cut its average 2019 Brent crude oil price forecast by $16 per barrel, to $64 per barrel, citing surging US production and an "increasingly uncertain demand backdrop".

Oil prices rise 1% amid OPEC supply cut

HSBC will invest $15-17 billion in the next three years in areas including technology and its core Asian markets of Hong Kong and China as it swings from a strategy of cost-cutting to growth, new Chief Executive John Flint said on Monday.

The announcement is Flint's first public indication to shareholders of the strategy he intends to pursue at HSBC, which has struggled to meet its profit goals in recent years after a shrinking of its global empire also cut income.

The update marks a definitive pivot in HSBC's post-2008 crisis strategy, from cost-cutting and restructuring to investment and expansion as it seeks to improve returns.

The bank is targeting a return on tangible equity of 11 per cent by 2020, Flint said and will sustain its dividends at current levels.

"After a period of restructuring, it is now time for HSBC to get back into growth mode," Flint said.

The main points of the bank's refreshed strategy will likely come as little surprise for HSBC investors, with the focus squarely on further expansion in China and its prosperous southern Pearl River Delta region in particular.

The bank will also pursue further expansion in the British mortgage market as one of eight new strategic targets, HSBC said.

HSBC shares showed little reaction to the announcement, remaining flat at 0852 GMT compared with as 1 per cent rise in the FTSE 350 British banks index.

The bank has found no silver bullet for its underperforming US&nbspbusiness, the strategy update released to investors on Monday showed, with HSBC set to focus on trying to grow its market share among internationally-focused mid-sized companies.

Flint in February said the bank was reviewing its US&nbspfranchise, which has suffered from lack of scale and the consequences of its disastrous $15 billion acquisition of consumer lender Household in 2003.

The update marks a definitive pivot in HSBC's post-2008 crisis strategy, from cost-cutting and restructuring to investment and expansion as it seeks to improve returns

HSBC will invest $15-17 billion in the next three years in areas including technology and its core Asian markets of Hong Kong and China as it swings from a strategy of cost-cutting to growth, new Chief Executive John Flint said on Monday. The announcement is Flint's first public indication to shareholders of the strategy he intends to pursue at HSBC, which has struggled to meet its profit goals in recent years after a shrinking of its global empire also cut income. The update marks a definitive pivot in HSBC's post-2008 crisis strategy, from cost-cutting and restructuring to investment and expansion as it seeks to improve returns. The bank is targeting a return on tangible equity of 11 per cent by 2020, Flint said and will sustain its dividends at current levels. "After a period of restructuring, it is now time for HSBC to get back into growth mode," Flint said. The main points of the bank's refreshed strategy will likely come as little surprise for HSBC investors, with the focus squarely on further expansion in China and its prosperous southern Pearl River Delta region in particular. The bank will also pursue further expansion in the British mortgage market as one of eight new strategic targets, HSBC said. HSBC shares showed little reaction to the announcement, remaining flat at 0852 GMT compared with as 1 per cent rise in the FTSE 350 British banks index. The bank has found no silver bullet for its underperforming US&nbspbusiness, the strategy update released to investors on Monday showed, with HSBC set to focus on trying to grow its market share among internationally-focused mid-sized companies. Flint in February said the bank was reviewing its US&nbspfranchise, which has suffered from lack of scale and the consequences of its disastrous $15 billion acquisition of consumer lender Household in 2003.

HSBC to invest $15-17 billion by 2020 as strategy pivots to growth

&nbsp;

<meta charset="utf-8" />

China on Monday opened up its $10 trillion bond market to foreign investors, in the latest liberalisation move by Beijing as it seeks to draw in more fund flows as it battles slowing economic growth.

The new conduit comes via Hong Kong, where &quot;qualified investors&quot; will be able to buy debt in China -- the world&#39;s third-largest bond market after the United States and Japan.

Qualified investors include central banks, sovereign wealth funds, and other major financial institutions, according to the People&#39;s Bank of China (PBoC) and the Hong Kong Monetary Authority, who jointly announced the platform on Sunday.

Their statement said the &quot;bond connect&quot; arrangement between the Hong Kong and mainland Chinese markets went into &quot;experimental operation&quot; from Monday.

The announcement came on a weekend in which Hong Kong and China marked the 20th anniversary of Britain&#39;s handover of the southern Chinese financial centre back to Beijing in 1997.

&quot;The bond connect is an important move for the central government to support Hong Kong&#39;s development and promote cooperation between the mainland and Hong Kong,&quot; the PBoC said Monday.

It will &quot;promote Hong Kong&#39;s long-term prosperity and stability and provide a more convenient investment channel for overseas investors. It will also steadily push forward the opening up of China&#39;s financial market&quot;.

The growing Chinese bond market has been virtually out of reach for foreign investors, who currently hold less than 1.5 per Fcent of bonds issued in China, according to estimates by Bloomberg.

The new platform mirrors previously established link-ups between the share markets of Hong Kong and mainland China that now allow foreign and Chinese investors to buy shares in the each other&#39;s markets.

Those links give foreigners some access to China-listed shares, while also allowing Chinese firms to buy Hong Kong-traded stocks.

The new bond connect scheme, however, currently only allows foreign investors to buy Chinese debt.

HSBC said it completed its first deal under the new arrangement as underwriter for a bond issue by Agricultural Development Bank of China.

&quot;The enhanced ease of investment under Bond Connect will attract more overseas funds, creating a more diversified investor base and further enhancing the market&#39;s size and depth,&quot; Helen Wong, HSBC Greater China Chief Executive, said in a statement.

&quot;This will help pave the way for China bonds to be included in major global bond indices in the future.&quot;

China has for years faced foreign complaints about restricted access to its markets, but has recently made a series of liberalisation pledges partly to expand its global market influence.

Last month, leading index compiler MSCI said it would include Chinese shares in its global emerging-market indices, citing loosening restrictions on foreign ownership of Chinese stocks.

Utilisation of the new bond connect platform, however, could hinge on fears of mounting Chinese debt levels which have prompted warnings of a looming crisis and possible defaults. China has moved aggressively in recent months to rein in runaway credit.

China has for years faced foreign complaints about restricted access to its markets, but has recently made a series of liberalisation pledges partly to expand its global market influence

China on Monday opened up its $10 trillion bond market to foreign investors, in the latest liberalisation move by Beijing as it seeks to draw in more fund flows as it battles slowing economic growth. The new conduit comes via Hong Kong, where "qualified investors" will be able to buy debt in China -- the world's third-largest bond market after the United States and Japan. Qualified investors include central banks, sovereign wealth funds, and other major financial institutions, according to the People's Bank of China (PBoC) and the Hong Kong Monetary Authority, who jointly announced the platform on Sunday. Their statement said the "bond connect" arrangement between the Hong Kong and mainland Chinese markets went into "experimental operation" from Monday. The announcement came on a weekend in which Hong Kong and China marked the 20th anniversary of Britain's handover of the southern Chinese financial centre back to Beijing in 1997. "The bond connect is an important move for the central government to support Hong Kong's development and promote cooperation between the mainland and Hong Kong," the PBoC said Monday. It will "promote Hong Kong's long-term prosperity and stability and provide a more convenient investment channel for overseas investors. It will also steadily push forward the opening up of China's financial market". The growing Chinese bond market has been virtually out of reach for foreign investors, who currently hold less than 1.5 per Fcent of bonds issued in China, according to estimates by Bloomberg. The new platform mirrors previously established link-ups between the share markets of Hong Kong and mainland China that now allow foreign and Chinese investors to buy shares in the each other's markets. Those links give foreigners some access to China-listed shares, while also allowing Chinese firms to buy Hong Kong-traded stocks. The new bond connect scheme, however, currently only allows foreign investors to buy Chinese debt. HSBC said it completed its first deal under the new arrangement as underwriter for a bond issue by Agricultural Development Bank of China. "The enhanced ease of investment under Bond Connect will attract more overseas funds, creating a more diversified investor base and further enhancing the market's size and depth," Helen Wong, HSBC Greater China Chief Executive, said in a statement. "This will help pave the way for China bonds to be included in major global bond indices in the future." China has for years faced foreign complaints about restricted access to its markets, but has recently made a series of liberalisation pledges partly to expand its global market influence. Last month, leading index compiler MSCI said it would include Chinese shares in its global emerging-market indices, citing loosening restrictions on foreign ownership of Chinese stocks. Utilisation of the new bond connect platform, however, could hinge on fears of mounting Chinese debt levels which have prompted warnings of a looming crisis and possible defaults. China has moved aggressively in recent months to rein in runaway credit.

In liberalisation step, China opens up $10 trillion bond market

Banking giant&nbsp;HSBC has revealed it is being investigated for helping individuals in evading taxes, including four Indians and their families.&nbsp;

But the bank did not disclose the identity of the four Indians.

HSBC said tax enforcement officials in the US, France, India, Belgium and Argentina are hot on their heels to investigate potential irregularities.

Providing further information, the bank said Indian taxmen had sent notices to the bank in August 2015 and November 2015 to state they had &quot;sufficient evidence to initiate prosecution&quot; against HSBC Swiss Private Bank and an HSBC company in Dubai.

HSBC further said it had set aside $773 million as a provision for various tax- and money laundering-related matters.

The bank first came under the spotlight when a leaked list containing several names made its way to several governments across the world, including India. The leaked list triggered several dispensations to launch probes against the list of individuals as they believe that several of them might be involved in stashing away cash to dodge taxes.

In 2015, a leaked list, also known as the &#39;Lagarde list&#39;, detailed how the bank helped its customers circumvent domestic tax laws and hide millions of dollars. The list had list of about 30,000 accounts holding roughly $120 billion of asset.

It is important to mention that tax avoidance is legal but deliberately concealing wealth to evade taxes is not.

The probe was widened after Panama Papers -- another leaked trove of documents listing names of individuals and entities who have offshore accounts -- released last year.

The banking giant had admitted in the past that it was responsible for &quot;past control failures&quot; but insisted that it had streamlined its system since. The bank said it had reduced its client base by almost 70 per cent to avoid colluding with individuals who earlier looked to use the fabled secret Swiss bank accounts in a discreet manner.

(WION with innputs from PTI)

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The banking giant also said offshore accounts of four Indians and their families were being probed by Indian tax authorities

Banking giant HSBC has revealed it is being investigated for helping individuals in evading taxes, including four Indians and their families. But the bank did not disclose the identity of the four Indians. HSBC said tax enforcement officials in the US, France, India, Belgium and Argentina are hot on their heels to investigate potential irregularities. Providing further information, the bank said Indian taxmen had sent notices to the bank in August 2015 and November 2015 to state they had "sufficient evidence to initiate prosecution" against HSBC Swiss Private Bank and an HSBC company in Dubai. HSBC further said it had set aside $773 million as a provision for various tax- and money laundering-related matters. The bank first came under the spotlight when a leaked list containing several names made its way to several governments across the world, including India. The leaked list triggered several dispensations to launch probes against the list of individuals as they believe that several of them might be involved in stashing away cash to dodge taxes. In 2015, a leaked list, also known as the 'Lagarde list', detailed how the bank helped its customers circumvent domestic tax laws and hide millions of dollars. The list had list of about 30,000 accounts holding roughly $120 billion of asset. It is important to mention that tax avoidance is legal but deliberately concealing wealth to evade taxes is not. The probe was widened after Panama Papers -- another leaked trove of documents listing names of individuals and entities who have offshore accounts -- released last year. The banking giant had admitted in the past that it was responsible for "past control failures" but insisted that it had streamlined its system since. The bank said it had reduced its client base by almost 70 per cent to avoid colluding with individuals who earlier looked to use the fabled secret Swiss bank accounts in a discreet manner. (WION with innputs from PTI)

HSBC reveals it is being probed for helping clients dodge taxes

HSBC Holdings reported a 62 percent slump in annual pre-tax profit that fell way short of analysts&#39; estimates due to one-time charges related to some businesses, and announced a new $1 billion share buy-back.

Europe&#39;s biggest bank by assets said on Tuesday profit before tax for 2016 fell to $7.1 billion from $18.87 billion in the previous year. That compared with the average analyst estimate of $14.4 billion, according to Thomson Reuters data.

The 2016 profit reflected a $3.2 billion impairment of goodwill in its global private banking business in Europe and the impact of its sale of operations in Brazil, the bank said in a statement to the stock exchanges.

The private banking impairment charges mainly relate to its acquisition of Safra Republic Holdings in 1999, it said, without giving details.

&quot;We have considered it appropriate to write off the remaining goodwill in the European private banking business,&quot; it said, adding the restructuring of global private banking is now largely complete.

The $1 billion share buy-back takes HSBC&#39;s announced buy-backs since the second half of 2016 to $3.5 billion following the bank&#39;s disposal of its Brazil unit in July last year in a $5.2 billion deal.

&quot;We are investing over $2 billion in digital transformation initiatives to improve our offer to customers, and are instigating a further $1 billion buy-back programme reflecting the strength and flexibility of our balance sheet,&quot; Stuart Gulliver, group chief executive, said in a statement.

HSBC&#39;s shares have been among the best-performing European bank stocks since Britain voted in June to leave the European Union, climbing 53 per cent against a 28 per cent increase in the STOXX Europe index of 600 banks as the bank benefited from appreciation of the US dollar and stronger capital levels.

The British bank, which has said it may move 1, 000 jobs to Paris following Britain&#39;s exit from the European Union, has said it had so far seen little impact from the referendum outcome on its business.

(Reuters)

HSBC's profit before tax for 2016 fell to $7.1 billion from $18.87 billion in the previous year

HSBC Holdings reported a 62 percent slump in annual pre-tax profit that fell way short of analysts' estimates due to one-time charges related to some businesses, and announced a new $1 billion share buy-back. Europe's biggest bank by assets said on Tuesday profit before tax for 2016 fell to $7.1 billion from $18.87 billion in the previous year. That compared with the average analyst estimate of $14.4 billion, according to Thomson Reuters data. The 2016 profit reflected a $3.2 billion impairment of goodwill in its global private banking business in Europe and the impact of its sale of operations in Brazil, the bank said in a statement to the stock exchanges. The private banking impairment charges mainly relate to its acquisition of Safra Republic Holdings in 1999, it said, without giving details. "We have considered it appropriate to write off the remaining goodwill in the European private banking business," it said, adding the restructuring of global private banking is now largely complete. The $1 billion share buy-back takes HSBC's announced buy-backs since the second half of 2016 to $3.5 billion following the bank's disposal of its Brazil unit in July last year in a $5.2 billion deal. "We are investing over $2 billion in digital transformation initiatives to improve our offer to customers, and are instigating a further $1 billion buy-back programme reflecting the strength and flexibility of our balance sheet," Stuart Gulliver, group chief executive, said in a statement. HSBC's shares have been among the best-performing European bank stocks since Britain voted in June to leave the European Union, climbing 53 per cent against a 28 per cent increase in the STOXX Europe index of 600 banks as the bank benefited from appreciation of the US dollar and stronger capital levels. The British bank, which has said it may move 1, 000 jobs to Paris following Britain's exit from the European Union, has said it had so far seen little impact from the referendum outcome on its business. (Reuters)

HSBC sees 62% decline in pre-tax profit for 2016

The EU&#39;s top anti-trust regulator on today slapped fines on banks HSBC, JP Morgan and Credit Agricole for rigging the Euribor interest rate benchmark used for a wide range of financial instruments.

The European Commission, the EU&#39;s executive arm, fined the banks &quot;a total of 485 million euros (USD 520 million) for participating in a cartel in euro interest rate derivatives,&quot; according to a statement.

The decision is the latest example of authorities trying to punish malpractice by the world&#39;s biggest banks in the years running up to the financial crisis in 2008.

The three banks had held out from a settlement with the EU in 2013 that saw Deutsche Bank, Societe Generale and Royal Bank of Scotland accept responsibility in the case.

&quot;Today&#39;s message sends a clear message: banks and all companies have to respect EU rules,&quot; said the EU&#39;s competition chief Margarethe Vestager at a news briefing.

The Euribor case is one of many involving the complicated business of setting benchmark rates, such as the Libor or the Yen Libor, that are used everyday to set the price of a wide range of assets including mortgages or student loans.

In recent years about a dozen of the world&#39;s biggest banks have admitted widespread collusion to fix the rates illegally and were slapped with huge fines and even prison terms.

Four former Barclays bankers were jailed by a British court in July for manipulating the Libor interest rate between 2005 and 2007.&nbsp;

(AFP) 
&nbsp;

EU fined HSBC, JP Morgan and Credit Agricole a total of 485 million euros for manipulating the Euribor interest rate

The EU's top anti-trust regulator on today slapped fines on banks HSBC, JP Morgan and Credit Agricole for rigging the Euribor interest rate benchmark used for a wide range of financial instruments. The European Commission, the EU's executive arm, fined the banks "a total of 485 million euros (USD 520 million) for participating in a cartel in euro interest rate derivatives," according to a statement. The decision is the latest example of authorities trying to punish malpractice by the world's biggest banks in the years running up to the financial crisis in 2008. The three banks had held out from a settlement with the EU in 2013 that saw Deutsche Bank, Societe Generale and Royal Bank of Scotland accept responsibility in the case. "Today's message sends a clear message: banks and all companies have to respect EU rules," said the EU's competition chief Margarethe Vestager at a news briefing. The Euribor case is one of many involving the complicated business of setting benchmark rates, such as the Libor or the Yen Libor, that are used everyday to set the price of a wide range of assets including mortgages or student loans. In recent years about a dozen of the world's biggest banks have admitted widespread collusion to fix the rates illegally and were slapped with huge fines and even prison terms. Four former Barclays bankers were jailed by a British court in July for manipulating the Libor interest rate between 2005 and 2007. (AFP)

EU fines three major banks over interest rate rigging

US actor John Malkovich took French daily Le Monde and two of its journalists to court on Friday for defamation over a report alleging that he held a secret Swiss bank account. 
 
Dangerous Liaisons star Malkovich is suing the paper over two articles published in February about the tax evasion scheme run by British banking giant HSBC out of its Swiss affiliate. 
 
Malkovich, 62, was among several celebrities listed by Le Monde among the &quot;elite tax evaders&quot; to have had a secret Swiss account between 2005 and 2007 - a claim Malkovich has rejected. 
 
&quot;Not only did John Malkovich not defraud tax authorities&quot;, he &quot;never had an account with HSBC&quot;, Julia Minkowski, one of his lawyers, told a Paris court. 
 
The only Swiss account he ever had was a securities portfolio with a bank that was later bought by HSBC, Minkowski added. 
 
The actor had declared that account to US tax authorities before closing it on November 30, 1999, a month before the creation of HSBC&#39;s Swiss private banking arm, she said. 
 
Herve Temime, another of the actor&#39;s lawyers, said Le Monde&#39;s linking of the actor to the Swissleaks revelations was &quot;shameful&quot;, calling his client a &quot;man of great integrity&quot;. 
 
Prosecutor Annabelle Philippe rapped the two journalists who authored the report, and who were absent from the proceedings, for not having the &quot;decency to come and recognise the lack of professionalism of their investigation&quot;. 
 
Le Monde&#39;s lawyer Christophe Bigot, for his part, accused Malkovich of &quot;creating a fuss&quot; despite having had an account &quot;in a discreet little bank in a country (that was) uncooperative&quot; with other countries on tax matters. 
 
The court will rule on the case in October. 
 
(AFP)

The Hollywood actor took two journalists to court for alleging he held a secret Swiss bank account

US actor John Malkovich took French daily Le Monde and two of its journalists to court on Friday for defamation over a report alleging that he held a secret Swiss bank account. Dangerous Liaisons star Malkovich is suing the paper over two articles published in February about the tax evasion scheme run by British banking giant HSBC out of its Swiss affiliate. Malkovich, 62, was among several celebrities listed by Le Monde among the "elite tax evaders" to have had a secret Swiss account between 2005 and 2007 - a claim Malkovich has rejected. "Not only did John Malkovich not defraud tax authorities", he "never had an account with HSBC", Julia Minkowski, one of his lawyers, told a Paris court. The only Swiss account he ever had was a securities portfolio with a bank that was later bought by HSBC, Minkowski added. The actor had declared that account to US tax authorities before closing it on November 30, 1999, a month before the creation of HSBC's Swiss private banking arm, she said. Herve Temime, another of the actor's lawyers, said Le Monde's linking of the actor to the Swissleaks revelations was "shameful", calling his client a "man of great integrity". Prosecutor Annabelle Philippe rapped the two journalists who authored the report, and who were absent from the proceedings, for not having the "decency to come and recognise the lack of professionalism of their investigation". Le Monde's lawyer Christophe Bigot, for his part, accused Malkovich of "creating a fuss" despite having had an account "in a discreet little bank in a country (that was) uncooperative" with other countries on tax matters. The court will rule on the case in October. (AFP)

John Malkovich a 'man of integrity', French court told lawyer in defamation case

HSBC, one of the largest banks in Europe, laid off 840 information technology workers in Britain on Monday, the first big tranche of redundancies under a restructuring plan that will eliminate 8,000 British jobs by the end of next year. 
 
Most of the staff affected was informed about the cuts on Monday, according to a source familiar with the matter. The majority of the roles are based in London, Sheffield and Tankersley and all the jobs will disappear by the end of this year, the source said. 
 
&quot;As part of a global relocation exercise, around 840 non-customer-facing IT roles will transfer from the UK to other sites around the world,&quot; John Hackett, chief operating officer of HSBC UK, said in a statement. The bank unveiled its three-year restructuring plan last year, designed to pare back its sprawling global network by shutting underperforming businesses to improve earnings hurt by high compliance costs, fines and low interest rates. 
 
The restructuring will eventually eliminate one job in five around the world, and around a sixth of jobs in Britain. 
 
When the restructuring plan was announced, chief executive officer Stuart Gulliver said most of the job losses in Britain would come from employees leaving on their own accord.The Unite union said many of the jobs will now be offshored to lower income countries such as India, China and Poland. 
 
&quot;HSBC&#39;s decision to axe so many IT jobs is as ruthless as it is reckless,&quot; said Dominic Hook, national officer at Unite. &quot;As IT glitches across the banks continue to prove, it is ultimately the customers who will suffer the consequences.&quot;Problems with HSBC&#39;s computer system cut customers off from access to online accounts on two occasions this year. 
 
HSBC has 47,000 UK workers at the end of December, according to its most recent annual report. More cuts are expected over the coming months as the bank continues to consolidate IT and back office operations, the sources said. 
 
HSBC&#39;s shares remained flat on Monday, in line with the benchmark FTSE 100 index. The lender&#39;s shares have fallen 20 per cent this year as tough global market conditions have hammered trading revenues for banks worldwide.

But this is just the beginning and the banking major 8000 jobs all over Britain

HSBC, one of the largest banks in Europe, laid off 840 information technology workers in Britain on Monday, the first big tranche of redundancies under a restructuring plan that will eliminate 8,000 British jobs by the end of next year. Most of the staff affected was informed about the cuts on Monday, according to a source familiar with the matter. The majority of the roles are based in London, Sheffield and Tankersley and all the jobs will disappear by the end of this year, the source said. "As part of a global relocation exercise, around 840 non-customer-facing IT roles will transfer from the UK to other sites around the world," John Hackett, chief operating officer of HSBC UK, said in a statement. The bank unveiled its three-year restructuring plan last year, designed to pare back its sprawling global network by shutting underperforming businesses to improve earnings hurt by high compliance costs, fines and low interest rates. The restructuring will eventually eliminate one job in five around the world, and around a sixth of jobs in Britain. When the restructuring plan was announced, chief executive officer Stuart Gulliver said most of the job losses in Britain would come from employees leaving on their own accord.The Unite union said many of the jobs will now be offshored to lower income countries such as India, China and Poland. "HSBC's decision to axe so many IT jobs is as ruthless as it is reckless," said Dominic Hook, national officer at Unite. "As IT glitches across the banks continue to prove, it is ultimately the customers who will suffer the consequences."Problems with HSBC's computer system cut customers off from access to online accounts on two occasions this year. HSBC has 47,000 UK workers at the end of December, according to its most recent annual report. More cuts are expected over the coming months as the bank continues to consolidate IT and back office operations, the sources said. HSBC's shares remained flat on Monday, in line with the benchmark FTSE 100 index. The lender's shares have fallen 20 per cent this year as tough global market conditions have hammered trading revenues for banks worldwide.

HSBC axes 840 IT jobs in Britain in first wave of planned cuts

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