HSBC had reported lower than expected earnings last Monday. It is also burdened to pay out US$1.6 billion in damages as settlement for allegations of mis selling mortgage backed bonds back in 2007.
The share values of the bank had declined more than 4% especially after emerging market economies slowed down resulting in a 12% drop in its revenues earned in the first six months of 2013.
According to an HSBC official, "Baaed upon the information currently available, it is possible that these damages could be as high as US$1.6 billion."
In another front, HSBC had also informed forty (40) diplomatic missions to close their accounts in the bank. HSBC said the programme is aimed 'to reduce business risks.' Amongst those advised to withdraw their funds and bring their business elsewhere were the Vatican ambassadorial office in Britain and the Apostolic Nunciature.
In response, the head of the Consular Corps of the UK told the Mail on Sunday that the decision had resulted in 'havoc'. It was through the efforts of the Foreign Office that helped these diplomatic missions open an account with HSBC.
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