HSBC (NYSE:HBC) has paid billions of dollars in fines for exceptionally bad governance. If accusations are true they launder money for drug dealers and terrorists. Protestations that they did not know those guys with suitcases of cash did not work.
So as they put in the fixes they assemble a board level group called the financial system vulnerabilities committee. Stuart T. Gulliver, the chief executive of HSBC, said in a statement. “The caliber, status and experience of the individuals reinforce once more how seriously we are taking this.”
Take a gander at the line up.
- David Hartnett, a former British permanent secretary for tax.
- William Hughes, former head of Britain’s Serious Organized Crime Agency from 2004 until 2010.
- Juan C. Zarate, former United States deputy national security adviser for combating terrorism.
- Nick Fishwick, former British counterterrorism official.
- Leonard H. Schrank, former chief executive of the global financial messaging system called Swift.
I`m impressed. So HSBC there are no more excuses because you are the Gold Standard against which all others will be measured. This could become a stong competitive advantage. If HSBC declines on something or takes a pass the deal will be tainted. It can pick and chose its customers and within reason will be able to exert pricing discipline.
Well that’s the way it should break. Lets watch. no excuses.