Household HSBC Watch

We are not sure how this will reflect on HSBC and their big push for Islamic banking but it is nice to see HSBC is also a correspondent bank for Israel. In France big problems for Societe Generale continue, but HSBC is interested in the bank. Perhaps HSBC will try to buy their way out their problems? On the other hand HSBC likes to buy troubled institutions, as evidenced by their purchase of Household International. Here is HSBC’s latest problem with money laundering:

Societe Generale is accused of failing to spot €32m. in fraudulent transactions and Barclays France €24m. HSBC Holdings’s Societe Marseillaise de Credit and the National Bank of Pakistan are each accused of failing to spot €2.6m. worth of the illegal transfers. The bank executives face fines of €375,000 and possible prison sentences of five years, Isabelle Montagne, a spokeswoman for the Paris Prosecutor’s Office, said in an interview at the court. Other defendants face fines up to €750,000 and as much as 10 years in prison, she said.

The case against the four lenders revolves around their role as correspondent banks for Israeli financial institutions.