HSBC is effectively on probation. Having entered into a DPA with the US courts in 2013, the bank’s behaviour over the following five years will be monitored by the Court, and the bank has to file quarterly reports of any significant developments.
I assume that the revelation of massive fraud in the UK will not help their standing in the US, although I believe the DPA (which suspends criminal prosecution against the bank, subject to good behaviour for 5 years) will only have effect because of failings by the bank of matters which were the subject of the DPA – i.e. – money laundering for drug barons and terrorists and violations of US sanctions against various regimes. Nevertheless, surely exposure of massive fraud will be extremely damaging which is why I believe HSBC is doing everything in its power to keep the fraud covered up, with it seems, the collusion of the media.
This is the final paragraph of the DPA.
“As long as the government asks the Court to keep this criminal case on its docket, the Court retains the authority to ensure that the implementation of the DPA remains within the bounds of lawfulness and respects the integrity of this Court. Accordingly, the parties are directed to file quarterly reports with the Court to keep it apprised of all significant developments in the implementation of the DPA. Doubts about whether a development is significant should be resolved in favor of inclusion. The Court will notify the parties if, in its view, hearings or other appearances are necessary or appropriate.”