Welcome to illuminati silver, we tell you
the truth about silver. Today is Tuesday 19th April 2016 and we are
taking a look at the various lawsuits levelled against HSBC. Yesterday we dealt with Deutsche
Bank and its involvement in Share price rigging, Libor and Euribor rigging, Breaking US sanctions,
and Gold and silver price manipulation. Today we are looking at HSBC and in fact our
research is assisted by their own annual report and accounts which reveals a fair amount of
their wrong doing, however our research goes further than that document.
HSBC Holdings plc is a British multinational banking and financial services company headquartered
in London, United Kingdom. It was established in its present form in London in 1991 by the
Hongkong and Shanghai Banking Corporation Limited to act as a new Group holding company.
The origins of the bank lie mainly in Hong Kong and to a lesser extent in Shanghai, where
branches were first opened in 1865. The HSBC name is derived from the initials of the Hongkong
and Shanghai Banking Corporation. The company was first formally incorporated in 1866.
HSBC is organised within four business groups: Commercial Banking; Global Banking and Markets
(investment banking); Retail Banking and Wealth Management; and Global Private Banking. It
has around 4,700 offices in 71 countries and territories across Africa, Asia, Europe, North
America and South America. It has 255,000 full-time employees and approximately 47 million
customers. Its recent figures show that its reported
profit for 2015 was $18.9 bn and revenue of $59.8 bn and has assets of $1,103 billion.
Interestingly it’s Report and Accounts reveal that it has the following law suits and legal
cases pending against it: • In Italy 640
• In Germany 231 • In France 100
• In Turkey 91 • In Spain 1003
And many more in other countries. So let’s just take a look at some of these:
By far the most serious of HSBC’s legal violations is its involvement in money laundering
and sanctions breaking, in which it has a long and disreputable history. HSBC is already
participating in a consent cease-and-desist order dating from 2010 and a deferred prosecution
agreement from 2012. The deferred prosecution agreement or DPA is subject to performance
monitoring. It now appears that HSBC may have breached the terms of the DPA and they are
awaiting a judgement from the Department of Justice.
Next is the long-running legal battle over Household International, the US mortgage lender
that HSBC bought in 2002. According to the Financial Times:
“the lawsuit….alleged Household, its chief executive, chief financial officer and head
of consumer lending made false and misleading statements that inflated the company’s share
price….. The plaintiffs also claimed that Household
artificially boosted its share price by engaging in predatory lending and hid the poor quality
of its loan portfolio and its financial accounting from March 2001 to October 2002.”
The bank lost the US class action in July 2013 but appealed. In May 2015 a retrial was
ordered, which is scheduled for June 2016. If HSBC loses this too, it could face damages
of “up to or exceeding” $3.6bn. Next, Bernie Madoff’s Ponzi scheme. According
to HSBC’s disclosure: “various non-US HSBC companies provided
custodial, administration and similar services to a number of funds incorporated outside
the US whose assets were invested with Madoff Securities…. Various HSBC companies have
been named as defendants in lawsuits arising out of Madoff Securities’ fraud.”
The Madoff fraud involves many of the world’s tax havens. In addition to High Court action
in the UK and an assortment of civil claims and class actions in the US, HSBC is facing
lawsuits in the British Virgin Islands, Bermuda, the Cayman Islands, Luxembourg and Ireland.
HSBC estimates and has provided $800m for the total damages from these actions, but
admits that the amount “could differ significantly”. Then there is the origination, servicing,
securitisation and foreclosure of US mortgages before the financial crisis.
HSBC has already entered into a cease-and-desist order with the Federal Reserve and the Office
of the Comptroller of the Currency: failure to comply with its terms carries undisclosed
money penalties. HSBC has also reached settlement with various regulatory bodies, paying a few
hundred million dollars in fines and redress – but there is more to come.
HSBC is currently defending itself against a host of lawsuits from investors (including
the Blackrock and PIMCO) claiming damages for mis-selling of mortgage securitizations.
HSBC is also undergoing investigation by the DoJ, the Massachusetts District Attorney and
the Colorado District Attorney for its involvement in subprime mortgage origination and securitization.
In February 2016 families of Americans murdered by Mexican drug cartels filed a lawsuit against
HSBC bank for allegedly providing “continuous and systematic material support” to Mexico’s
Sinaloa, Juárez, and Los Zetas cartels by laundering billions of dollars. This follows
on from 2012, whereby HSBC Holdings agreed to pay a record $1.92 billion in fines to
U.S. authorities for allowing itself to be used to launder drug money from Mexico. The
Department of Justice said at the time that the Sinaloa Cartel and Colombia’s Norte
del Valle cartel together laundered $881 million through HSBC and a Mexican branch.
In November 2014 it was reported that the Royal Bank of Scotland and HSBC were included
in a group of five of the world’s biggest banks ordered to pay fines totalling £2billion
by regulators as a result for rigging the foreign exchange market.
The penalties imposed by British, US and Swiss authorities after an 18-month investigation
relate to the rigging of the £3trillion-a-day market, and add to the large sums already
collected over the Libor fixing scandal. Of particular interest to our listeners is
the revelation by HSBC in early 2015 that the CFTC had issued their U.S. branch with
a subpoena in January, demanding documents and details regarding their precious metal
trading operations. In November 2014, the DoJ also requested HSBC issue documents as
part of an antitrust investigation regarding precious metals. We heard in our last video
that Deutsche Bank may indeed reveal the identities of those also involved and we wait to see
whether HSBC is mentioned. We are aware that there are many more cases
that could be covered. We are also very much aware that few if any bank Executives have
gone to prison for the actions of their Organisations, as it seems acceptable that the payment of
a fine is sufficient to remedy all ills. Is this because no proof can be provided beyond
reasonable doubt against an individual, or is it because these banks and Governments
collude in many of such operations for the benefit of those Governments of the day?
What do you think? We hope you have found this video interesting
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is updated daily can be found at facebook.com/illuminatisilver Disclaimer: Illuminati Silver owners come from a background
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worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of