UK fines HSBC bank for not going far enough to protect deposits in case it collapsed
UK regulators say HSBC has been fined $72.8 million for failing to adequately protect customer deposits in the event the bank collapsed
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.HSBC, Europe’s biggest bank, has been fined 57.4 million pounds ($72.8 million) for failing to adequately protect customer deposits in the event that the bank collapsed, U.K. regulators said Tuesday.
Two units of London-based HSBC Holdings Plc violated rules designed to ensure regulators have the information they need to protect depositors when banks fail, said Britain’s Prudential Regulation Authority, which is part of the Bank of England.
The penalty is the second-biggest ever imposed by the agency, behind only the 87 million pound fine last July against Credit Suisse following the Swiss bank's near-collapse and emergency takeover by rival UBS.
The HSBC violations, which occurred between 2015 and 2022, included a failure to accurately identify deposits eligible for protection under a U.K. program that guarantees bank deposits up to 85,000 pounds ($107,800) for individuals, the bank regulator said.
“The serious failings in this case go to the heart of the PRA’s safety and soundness objective,” Sam Woods, chief executive of the Prudential Regulation Authority, said in a statement. “It is vital that all banks comply fully with our requirements around preparedness for resolution.”
HSBC cooperated with the investigation and agreed to settle the case, the authority said. Without this cooperation, the fine would have been 96.5 million pounds ($122.4 million).
The bank said it was “pleased” to resolve the matter.
“The PRA’s final notice recognizes the Bank’s co-operation with the investigation, as well as our efforts to fully resolve these issues,” HSBC said in a statement.