The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksHSBC Holdings Share News (HSBA)

Share Price Information for HSBC Holdings (HSBA)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 696.00
Bid: 697.60
Ask: 697.80
Change: 5.10 (0.74%)
Spread: 0.20 (0.029%)
Open: 693.60
High: 700.40
Low: 692.20
Prev. Close: 690.90
HSBA Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

UPDATE 2-UK's banks pay out less than half of swaps mis-selling pot

Thu, 29th Jan 2015 14:22

* 1.8 billion pounds so far paid out by banks

* Banks had set aside 4.4 billion pounds for compensation

* Lawyer says banks' provisions could be reduced

* Regulator sets March deadline for claims (Adds quote from lawyer on banks' provisions)

By Matt Scuffham

LONDON, Jan 29 (Reuters) - Britain's banks have paid outless than half of the 4.4 billion pounds ($6.7 billion) setaside to cover the mis-selling of complex interest rate hedgingproducts, according to data from the financial regulator.

The Financial Conduct Authority (FCA) ordered banks toreview nearly 30,000 cases in 2013 for possible mis-sellingafter finding serious failings in the way the products weresold.

The products were meant to protect smaller companies againstrising interest rates, but when rates fell the companies had topay extra charges, typically running to tens of thousands ofpounds. They also faced hefty penalties to extricate themselvesfrom the deals, which most said they were not aware of.

The FCA said on Thursday that banks had so far paid out 1.8billion pounds in compensation, and set a deadline for the endof March for claims. The sums set aside also covered the cost ofhaving to terminate agreements early and having to employ morethan 3,000 people to review the cases.

The scheme has drawn sharp criticism from lawmakers andbusinesses that believe it is loaded in favour of the banks. Ina parliamentary debate last December, lawmakers said it lackedtransparency, was inconsistent and did not give victims a properright of appeal.

Banks dismissed more than a third of the cases, withcustomers deemed sufficiently sophisticated to have understoodthe products. About half of those left in the review were thenoffered alternative products rather than cash compensation.

The mis-selling is one of a number of scandals involvingBritish banks in the past five years, ranging from the attemptedmanipulation of foreign exchange and benchmark interest rates tothe mis-selling of loan insurance.

Royal Bank of Scotland faced more claims than anyother bank in the scheme and has set aside 1.46 billion poundsfor compensation. Barclays set aside 1.34 billion pounds whileHSBC and Lloyds Banking Group have set asidehundreds of millions.

Barclays reduced the amount it had set aside forcompensation by 160 million pounds last October and banks willgive an update on their provisions alongside full-years resultsin February and March.

Alison Loveday, managing partner of law firm Berg, which isworking on cases of alleged swaps mis-selling, said other bankscould also reduce the amounts they have set aside.

"I don't think the banks are being held to task on this...Idon't think they ever thought they were going to have to paythem out and they haven't been forced to pay them so now they'rereleasing the money," Loveday said.

The FCA said 365 million pounds had been paid out to coverso-called consequential losses, which set the clock back to thepoint before the products were sold and require banks tocompensate beyond the direct losses that businesses havesuffered.

($1 = 0.6606 pounds) (Reporting by Matt Scuffham; Editing by Steve Slater and SusanThomas)

More News
3 Apr 2024 13:19

Morgan Stanley commits to Canary Wharf home until at least 2038

LONDON, April 3 (Reuters) - Morgan Stanley's UK arm has extended a lease on its 547,000 square foot European headquarters in London's Canary Wharf to 2038, committing to the Docklands financial hub even as rivals relocate in search of smaller offices.

Read more
2 Apr 2024 17:28

London stocks dip in global risk off mood; commodity-linked stocks jump

FTSE 100 down 0.2%, FTSE 250 adds 0.9%

*

Read more
2 Apr 2024 15:22

London close: Stocks turn red on return from Easter break

(Sharecast News) - UK stocks experienced a downturn by the end of trading on Tuesday, as investors resumed activity following the extended weekend, with initial gains reversed by the close ahead of a week marked by a number of key economic data releases.

Read more
2 Apr 2024 11:50

LONDON MARKET MIDDAY: FTSE 100 buoyed by UK manufacturing growth

(Alliance News) - The FTSE 100 in London was up at midday on Tuesday, reacting to the UK manufacturing sector returning growth and further PMI data across the globe.

Read more
2 Apr 2024 09:09

LONDON MARKET OPEN: FTSE 100 up as oil majors and gold miners shine

(Alliance News) - Stock prices in London opened higher on Tuesday, in confident trade following the long Easter weekend, ahead of a UK manufacturing sector reading later in the morning.

Read more
2 Apr 2024 08:44

TOP NEWS: HSBC to pay special dividend after completing Canadian sale

(Alliance News) - HSBC Holdings PLC on Tuesday said it would pay shareholders a special dividend after completing the sale of its Canadian business.

Read more
2 Apr 2024 08:05

LONDON BRIEFING: HSBC in special payout on Canada sale; Astra FDA win

(Alliance News) - London's FTSE 100 traded higher on Tuesday following the long weekend, as investors react to US data, and look ahead to manufacturing sector readings from Europe later.

Read more
28 Mar 2024 09:55

UBS makes Ermotti Europe's best-paid bank boss with $16 mln package

Ermotti earned $15.9 mln in 2023

*

Read more
27 Mar 2024 14:42

Bank of England steps up scrutiny of private equity and bank valuations

LONDON, March 27 (Reuters) - The Bank of England said on Wednesday it was taking a deeper look at risks from the opaque private equity sector, and why valuations of Britain's main banks are "subdued" compared with international peers.

Read more
27 Mar 2024 09:40

LONDON BROKER RATINGS: Sainsbury's, Petershill Partners upped to 'buy'

(Alliance News) - The following London-listed shares received analyst recommendations Wednesday morning and Tuesday:

Read more
27 Mar 2024 08:54

Britain's Vanquis bank 'resets' business after 2023 loss

LONDON, March 27 (Reuters) - Vanquis Banking Group on Wednesday said it was resetting its business, highlighting the challenges faced by Britain's smaller banks, after reporting a 4.4 million-pound ($5.55 million) loss before tax for 2023.

Read more
27 Mar 2024 07:44

Britain's Vanquis bank 'resets' business after 2023 loss

LONDON, March 27 (Reuters) - Vanquis Banking Group on Wednesday said it was resetting its business, highlighting the challenges faced by Britain's smaller banks, after reporting a 4.4 million-pound ($5.55 million) loss before tax for 2023.

Read more
25 Mar 2024 10:19

LONDON BROKER RATINGS: SocGen raises Sage; Numis cuts Virgin Money

(Alliance News) - The following London-listed shares received analyst recommendations Monday morning and Friday:

Read more
18 Mar 2024 06:59

PRESS: M&S and HSBC planning loyalty "superapp", seven-year deal — Sky

(Alliance News) - Marks & Spencer Group PLC and HSBC Holdings PLC are preparing plans to announce a new seven-year deal that includes the creation of a loyalty "superapp", Sky News reported Sunday.

Read more
11 Mar 2024 14:05

HSBC to recruit about 50 more bankers for US commercial bank - Reuters

(Sharecast News) - HSBC is planning to recruit about 50 more bankers in its US commercial bank to lend to start-up companies, mainly in the technology and healthcare sectors, according to a senior executive.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.