Banksters: HSBC, the Untouchable Titan of Global Finance

Recent questions

• What is the significance of HSBC in global finance?

  HSBC, a major international bank, has been at the center of numerous scandals involving money laundering, tax evasion, and illicit fund movements. It has facilitated offshore transactions, particularly for Chinese residents, and has a history intertwined with the opium trade. Despite facing severe accusations, HSBC managed to evade trial and significant penalties, leading to public outrage. The bank's size and influence have grown to the extent that it operates in 100 countries and is considered as large as a state. Its alignment with China's financial ambitions, symbolized by Chinese President Xi Jinping's visit to the UK, highlights its role in facilitating Chinese capital investment in London and establishing the Yuan as a reference currency in international trade.

• How did HSBC handle scandals and legal repercussions?

  Despite being embroiled in scandals involving money laundering and tax evasion, HSBC managed to avoid severe legal repercussions. The bank faced public outrage and scrutiny, with its CEO, Stuart Gulliver, apologizing for his involvement in tax evasion schemes. HSBC's self-regulation post-scandal involved hiring thousands of staff to monitor transactions internally, but doubts persist about the bank's sincerity in reforming. The bank's political connections, particularly with Chinese leaders, shielded it from investigations and significant penalties. Despite the controversies, HSBC continued to operate globally and align itself with China's financial ambitions.

• What role did HSBC play during the 2007 financial crisis?

  During the 2007 financial crisis, HSBC refused government assistance and instead raised funds from Hong Kong businessmen, which led to tripling share prices. The bank's decision to not seek government aid and its ability to secure funds independently showcased its financial stability and resilience during the crisis. HSBC's strategic move to raise funds from Hong Kong businessmen rather than rely on government support contributed to its reputation as a financially sound institution amidst the turmoil of the financial crisis.

• How did HSBC establish its presence in China?

  HSBC was the first foreign bank in China and played a significant role in fostering relationships with Chinese leaders, resulting in substantial profits. President Steven Green's efforts in building connections with Chinese leaders paved the way for HSBC to establish a strong presence in the country. The bank's early entry into the Chinese market and its strategic partnerships with key figures in the Chinese government enabled it to capitalize on China's emerging market and solidify its position as a leading foreign bank in the region.

• What were the implications of HSBC's involvement in the Panama Papers?

  The Panama Papers revealed HSBC's significant role in facilitating offshore transactions, particularly for Chinese residents. The leaked records exposed the flow of dark money through the global financial system, with offshore entities being utilized for dealings with terrorist organizations and authoritarian regimes. HSBC's involvement in the Panama Papers scandal further tarnished its reputation, as it highlighted the bank's facilitation of illicit fund movements on a global scale. The revelations from the Panama Papers underscored the extent of HSBC's involvement in offshore transactions and raised questions about the bank's compliance with regulations and ethical standards.