News Summary: Report cites lax controls at HSBC

AP News
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Posted: Jul 16, 2012 8:46 PM
News Summary: Report cites lax controls at HSBC

LAX CONTROLS AT BIG BANK: Europe's largest bank, HSBC, had lax controls that allowed Mexican drug cartels to launder billions of dollars through its U.S. operations, a Senate investigation found.

U.S. REGULATORS ALSO FAULTED: An extensive report on U.K.-based HSBC Holdings PLC by the Senate Permanent Subcommittee on Investigations also says U.S. regulators knew the bank had a poor system to detect problems but failed to take action.

HSBC APOLOGY, JUSTICE PROBE: HSBC says its executives will offer a formal apology at a hearing by the subcommittee Tuesday. The U.S. Justice Department is conducting a criminal investigation into HSBC's operations.