Jerome Favre/Bloomberg NewsStuart Gulliver, chief executive of HSBC.
HSBC Sets Aside $2 Billion for Legal Woes as Profit Falls
Profit at HSBC Holdings dropped nearly 9 percent in the first half of the year, as the big bank deals with the fallout from a money-laundering investigation and a settlement over selling inappropriate financial products.
On Monday, HSBC said that it had set aside $700 million to cover the potential fines, settlements and other expenses related to a money-laundering inquiry in the United States. The bank made a further $1.3 billion provision toward a regulatory settlement related to payment protection plans for credit card loans, home mortgages and other consumer borrowings.
The legal woes weighed on the company’s financial results.
