HSBC - Regulators and Supervisors who failed?
It is not that HSBC has just been
charged with abetting tax evasion. It has faced specific charges of laundering
in more than one jurisdiction. HSBC has wrongly sold payment protection
insurance; it has been charged with having given terrorists, drug cartels, and
criminals access to the US financial system. It was involved in LIBOR fixing.
With such intensive and
extensive misdemeanors, how could the home country and host country regulators
have overlooked the manipulations and machinations of HSBC? Where were the Colleges of regulators?
HSBC Europe's largest bank
had many home supervisors and regulators:
- The Financial Services Act 2012 established an independent Financial Policy Committee (FPC) a new prudential regulator of the Bank of England.
- Prudential Regulation Authority (PRA) authorizes and supervises HSBC for safety and soundness, ensuring adequacy capital.
- Financial Conduct Authority (FCA) is responsible for making sure bank employees behave properly.
- Serious Fraud Office (SFO)
- British tax authority, HMRC (HMRC)
- Competition and Markets Authority(CMA)
Worrying
Doubts:
What is the on site/off site surveillance, monitoring mechanism of the Supervisors in England?
Why
was no action taken by the regulators / supervisors against HSBC?
What
is the accountability of the regulators / supervisors?
Does
that imply that you can get away if you are too big to fail? (TBTF)
Have we double standards when it comes to big banks?
Where is post BCCI supervisory coordination efforts?
Views expressed Without
any risk or responsibility
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