Former HSBC chief, Michael Geoghegan, could be among those to face bonus clawbacks following the US money laundering scandal Photo: JANE MINGAY
Top HSBC executives could have millions of pounds of bonuses clawed back in the wake of the US money laundering scandal.
HSBC’s former chief executive and head of its Mexican business could have millions of pounds in bonuses clawed back as a result of the US money laundering scandal that has so far cost the bank $700m (£444m).
One-time chief executive Michael Geoghegan and Sandy Flockhart, the head of the bank’s Mexican business for much of the period covered by the US investigation, are understood to be among former senior managers who face having parts of their bonus taken back.
Douglas Flint, chairman of HSBC, disclosed today that the bank was looking at clawbacks of managers’ bonuses in light of the revelations that for several years the lender’s Mexican subsidiary was involved in handling money linked to drug cartels and even terrorist organisations.
“We will be going through it [the US report] in some detail and looking at personal responsibility to determine whether that is appropriate,” said Mr Flint.
Asked whether Mr Geoghegan could be among those who face having their bonuses reviewed, Mr Flint said: “It could potentially include anyone who has deferred compensation.”