HSBC Covers for Potential U.S. Fine

    LONDON, ENGLAND - AUGUST 03:  HSBC bank headquarters building in Canary Wharf reflects early morning sunshine on August 3, 2009 in London. HSBC bank has announced a pre-tax profit of £2.98 billion in the first six months of 2009 -  down by a half from 2008.  Barclay's Bank has announced £2.98 billion profit for the first six months of 2009.  (Photo by Peter Macdiarmid/Getty Images)

    Peter Macdiarmid / Getty Images

    A fine for anti-money laundering breaches could cost HSBC $1.5 billion, the company said Monday. HSBC said it has set aside $800 million in reserve against a potential fine, on top of the $700 million the company put aside in July. The U.S. Senate released a report over the summer that said the European bank had allowed shady funds from Mexico, Iran, Saudi Arabia, and other countries to shift between clients. “The report undoubtedly caused considerable reputational damage to HSBC,” HSBC chief executive Stuart Gulliver said on Monday.

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