|French Court Imposes €1 Billion Bail on HSBC|
HSBC has been placed under formal investigation by a French court and ordered to pay €1 billion (CHF1.04 billion) in bail in relation to alleged tax evasion abuses by its Swiss private banking branch.
The latest announcement adds to the huge pressure mounted on HSBC over the alleged behaviour of its Geneva-based unit which came to light when former employee leaked sensitive documents to the French authorities.
The British controlled banking group has endured intense scrutiny in Britain for many months following the media reports that detailed transactions between the private bank and clients. The bank has issued a formal apology for its past actions and said it has reformed.
However, the bank called the French €1 billion bail "without legal basis and…unwarranted and excessive". It said it would appeal the decision to set such a high bail.
Last year, Swiss bank UBS failed in its bid to cancel a €1.1 billion bail payment set by a French court examining the Swiss bank on similar charges.
HSBC is also being probed by authorities in Belgium, the United States and Argentina. India has threatened to start its own investigation into the bank.
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Published on our website on Apr.14, 2015