{"id":19287,"date":"2012-07-20T13:38:19","date_gmt":"2012-07-20T17:38:19","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=19287"},"modified":"2012-07-20T13:38:19","modified_gmt":"2012-07-20T17:38:19","slug":"dbrs-hsb-on-review-negative","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=19287","title":{"rendered":"DBRS: HSB on Review-Negative"},"content":{"rendered":"

A DBRS headline<\/a> states that DBRS Places HSBC Bank Canada Under Review with Negative Implications<\/a> but details are Top Secret and available for subscribers only.<\/p>\n

DBRS simultaneously placed HSBC USA Inc. and HSBC Bank USA, NA<\/a> under review negative:<\/p>\n

The ratings action follows DBRS\u2019s placement of its ratings for HSBC Holdings plc (HSBC or the Group \u2013 rated AA (high)), HUSI\u2019s and HBUS\u2019s ultimate parent, Under Review with Negative Implications. Separately, DBRS has withdrawn its ratings on HUSI\u2019s FDIC-guaranteed debt as this debt has been repaid.<\/p>\n

The placement of HSBC\u2019s ratings Under Review was driven by the combination of more detailed revelations of the Group\u2019s historic missteps in relation to certain regulatory and legal issues, as well as the changed environment that poses greater challenges to HSBC\u2019s franchise and credit fundamentals.
…<\/b>
The review will focus on HSBC Holdings plc\u2019s prospects for ensuring that it delivers on improved controls to prevent future missteps. The review will also consider the evolving LIBOR\/EURIBOR investigations and the more negative environment for large banking organizations. Among the consequences, HSBC\u2019s organization and credit fundamentals could be impacted through increased compliance costs, added fees, limits on pay, increased capital requirements and ring-fencing that could disrupt the efficient operation of a global universal bank.<\/p><\/blockquote>\n

The missteps referred to are almost certainly the results of the US Senate probe<\/a>:<\/p>\n

HSBC\u2019s U.S. unit \u201coffers a gateway for terrorists to gain access to U.S. dollars and the U.S. financial system,\u201d according to the subcommittee\u2019s report.<\/p>\n

The lender ignored links to terrorist financing among its customer banks, including Riyadh, Saudi Arabia-based Al Rajhi Bank (RJHI), which had ties to terror groups through its owners, the report said.
…<\/b>
The report also cited HSBC\u2019s violations of Treasury Department sanctions on dealings with Iran.
…<\/b>
An outside audit by Deloitte LLP showed that 25,000 transactions totaling more than $19.4 billion involved Iran, according to the report. Of those, as many as 90 percent passed through the bank\u2019s U.S. accounts with no disclosure of ties to Iran, the report shows. Senate investigators documented similar transactions involving North Korea, Cuba, Sudan and Burma.<\/p>\n

Bank documents also showed HSBC\u2019s U.S. unit cleared transactions through at least six Iranian banks.<\/p><\/blockquote>\n

HSBC Bank Canada is the issuer of HSB.PR.C, HSB.PR.D (both DeemedRetractibles) and HSB.PR.E (FixedReset). All are tracked by HIMIPref™ and assigned to the indicated subindices. <\/p>\n","protected":false},"excerpt":{"rendered":"

A DBRS headline states that DBRS Places HSBC Bank Canada Under Review with Negative Implications but details are Top Secret and available for subscribers only. DBRS simultaneously placed HSBC USA Inc. and HSBC Bank USA, …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-19287","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19287"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/19287\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}