The bank of money's laundry

International
It puts in reservation 700 mod for sanctions for laundry of money
The bank of money's laundry
By: Carlos Damian July 31, 2012
They have high profitability with a net profit of 8 thousand 440 mod
Mexico. – The British bank HSBC had two thousand million dollars to pay fines for regulatory questions in The States for suspicions of laundry of money and to reimburse clients in the Great Britain in a case of forced sales of insurance. The bank put in reservation 700 million dollars in the immediate thing to make in front of the fines in The States in a famous case of laundry of money, although it recognized that the figures it could be “significantly higher” and it would arrive to a thousand millions, like analysts estimate. The descent of the results of HSBC is also explained by another provision of a thousand 300 millions to compensate its clients in litigations related with forced sales of insurance.

HSBC and other British banks will have to compensate their clients for a called product "PPI" that was sold ace directly their users without consulting them during a lot of time, practice that was condemned by the High Tribunal of London. The British banks will also have to reserve money to pay to small and medium companies in a case of sale of products the variations for the types of interest that were denounced by the British authority of the financial markets to assure (FSA, in Spanish) at the end of June. When giving to know their high profitability, HSBC announced a net profit of 8 thousand 440 million dollars in the first semester of the year, 8 percent less than last year, when the bank won in the same period 9 thousand 210 million dollars.

However, the benefit before tax increased 11 percent, up to 12 thousand 740 million dollars, thanks to the surrender of active. The general director of the Bank Stuart Gulliver (SG), he declared, “we ask for forgiveness for our errors as regards fight against the laundry of money". An investigation of the Senate of The States concluded that the bank and its American branch hid operations with Iran for 16 thousand million dollars in six years, violating the transparency rules. The report of the Senate criticizes the “deeply polluted” culture that prevailed in the branch of the bank in Mexico, and he said that it enters 2007 and 2008 the Mexican operations of HSBC they moved 7 thousand million dollars.

HSBC also indicated to have received a petition of information of the British regulators in the context of the manipulation of the rates interbank Libor and Euribor. These cases “eclipsed the financial results and they added more distrust in the bank sector". SG commented that during the first ones six months of 2012, we have carried out a substantial progress in strategic areas; we increase the revenues in markets of quick growth like Asia.

The little speed in LA it will diminish earnings of Spain and Portugal
The deceleration in which they were strong economies in Latin America could have impact in the earnings of Spanish and Portuguese companies that they have found in the last two decades of investments in the exterior a lifeboat before the crises in its origin countries. The region almost represents 15 percent of the revenues of Portuguese companies and 33 percent for Spanish companies, the highest proportion in Europe, according to Morgan Stanley. For companies like the company of services EDP, the oil GALP, phone and moneylender BBVA, Latin America supposes more than half of the sales. But the things could become difficult.

"Maybe Latin America (LA), be not as attractive as it used to be, if (…) Spain and Portugal were stable, the things would be well, but it is not the case", Jaime Ramos Martin, administrator of funds of Standard Life Investments indicated. The Iberian companies went aboard principles of the 90 in a series of acquisitions that, according to data of Thomson Reuters, they implied that more than 130 thousand million Eurus they crossed the Atlantic. Qualified by some people of "reconquest ", in reference to the Spanish’s colonization of the XVI century, the investments have offered ostentatious returns of capitals, giving to the companies a piece of the quick growth and increase of the demand in powers like Brazil and Mexico.

The dominant Brazil could expand less than 2 percent this year, according to economists consulted by Reuters, from the recent 5 half percent. Peru and Chile that once grew to similar rates to those of China from 7 to 9 percent, they could stay near 4 percent. Those are very bad news in a moment in which Spain and Portugal are besieged by the recession, with a historical unemployment, their real state markets collapse and the consumer's expense decays.

Portugal receives help of a rescue, while Spain soon could need a complete help, besides the package of attendance for its banks. "We don't believe that Latin America can save Spain and Portugal", Diego Iscaro, economist of Global IHS Insight said. The exhibition to these emergent economies could help, but “assuming that the activity in the Latin American countries stays strong, what continues far from being clear given the deceleration that is already evident in Argentina and Brazil", he added. As in the XVI century, the one on the way to the Latin American wealth is replete of obstacles.

HSBC "reserved" 700 million of dollars "to confront the fines that will pay in The States for money wash. In Mexico, this bank washed money by 7 billion of dollars to the organized crime, paid 28 million of dollars, what we doubt since in this fiscal paradise the rich do not pay taxes much less fines, that is to say, 25 times less. (La Jornada, economia, p. 21, July 31, 2012).