Editorial: Has bank culture really changed?

 

Share
Related Topics

Between HSBC's record $1.9bn fine today and Standard Chartered's $327m penalty the day before, it has been a week of hard lessons for Britain's banks. Or has it?

The charges are egregious indeed. HSBC's US operation allegedly helped launder money for Mexican drugs cartels and rogue states including North Korea. And Standard Chartered is accused of illegally processing up to $250bn of Iranian money through its New York arm.

The fines are not as punishing as they seem, however. Although they are the highest the US has ever levied for money-laundering or sanctions-busting, they are still chicken feed in comparison with the banks' respective revenues.

Then there is the question of responsibility. Peter Sands, the chief executive at Standard Chartered, is still in his job, as is Richard Meddings, the finance director. Indeed, none of the bank's senior executives has been forced out over the affair.

Similarly, the only senior resignation at HSBC has been that of David Bagley, the head of group compliance who dramatically handed in his notice at a US Senate committee hearing in July. Apologists point out that there has been so much boardroom upheaval since HSBC's laundering activities were taking place – between 2006 and 2009 – that no relevant senior management remain. And Stuart Gulliver, who took over the top job in 2010, is busy presenting himself as a much-needed new broom and receiving plaudits for it.

It is hard to believe, though, that no one with any responsibility for the bank's law-breaking remains. Furthermore, questions must surely still be asked of those who have left – not least Lord Green, who was chief executive from 2003 to 2006, executive chairman until 2010, and is now a Trade minister for the Coalition.

In any other industry, allegations of illegal practices on such a scale would be catastrophic – bosses would resign, criminal charges would be levelled, companies might even go out of business. Not so, it would appear, in banking.

React Now

Latest stories from i100
SPONSORED FEATURES
iJobs Job Widget
iJobs General

Recruitment Genius: Accounts Assistant - Part Time

£10500 - £14000 per annum: Recruitment Genius: A Part Time Accounts Assistant ...

Recruitment Genius: Accounts Assistant

£18000 - £21000 per annum: Recruitment Genius: This company supply, install an...

Tradewind Recruitment: Reception Teacher

£120 - £140 per day: Tradewind Recruitment: An excellent three form entry scho...

The Green Recruitment Company: Commercial Construction Manager

£65000 Per Annum bonus & benefits package: The Green Recruitment Company: The ...

Day In a Page

Read Next
BoJack is the walking embodiment of why-the-long-face  

BoJack Horseman - the most depressing cartoon on TV - is thankfully back for a third Netflix series

Edmund Cuthbert
 

The world's population has reached 'peak youth'. This should be a wake-up call to world leaders

Perry Maddox
Mullah Omar, creator of the Taliban, is dead... for the fourth time

Mullah Omar, creator of the Taliban, is dead... again

I was once told that intelligence services declare their enemies dead to provoke them into popping up their heads and revealing their location, says Robert Fisk
Margaret Attwood on climate change: 'Time is running out for our fragile, Goldilocks planet'

Margaret Attwood on climate change

The author looks back on what she wrote about oil in 2009, and reflects on how the conversation has changed in a mere six years
New Dr Seuss manuscript discovered: What Pet Should I Get? goes on sale this week

New Dr Seuss manuscript discovered

What Pet Should I Get? goes on sale this week
Oculus Rift and the lonely cartoon hedgehog who could become the first ever virtual reality movie star

The cartoon hedgehog leading the way into a whole new reality

Virtual reality is the 'next chapter' of entertainment. Tim Walker gives it a try
Ants have unique ability to switch between individual and collective action, says study

Secrets of ants' teamwork revealed

The insects have an almost unique ability to switch between individual and collective action
Donovan interview: The singer is releasing a greatest hits album to mark his 50th year in folk

Donovan marks his 50th year in folk

The singer tells Nick Duerden about receiving death threats, why the world is 'mentally ill', and how he can write a song about anything, from ecology to crumpets
Let's Race simulator: Ultra-realistic technology recreates thrill of the Formula One circuit

Simulator recreates thrill of F1 circuit

Rory Buckeridge gets behind the wheel and explains how it works
Twitter accused of 'Facebookisation' over plans to overhaul reverse-chronological timeline

Twitter accused of 'Facebookisation'

Facebook exasperates its users by deciding which posts they can and can’t see. So why has Twitter announced plans to do the same?
Jane Birkin asks Hermès to rename bag - but what else could the fashion house call it?

Jane Birkin asks Hermès to rename bag

The star was shocked by a Peta investigation into the exotic skins trade
10 best waterproof mascaras

Whatever the weather: 10 best waterproof mascaras

We found lash-enhancing beauties that won’t budge no matter what you throw at them
Diego Costa biography: Chelsea striker's route to the top - from those who shared his journey

Diego Costa: I go to war. You come with me...

Chelsea's rampaging striker had to fight his way from a poor city in Brazil to life at the top of the Premier League. A new book speaks to those who shared his journey
Ashes 2015: England show the mettle to strike back hard in third Test

England show the mettle to strike back hard in third Test

The biggest problem facing them in Birmingham was the recovery of the zeitgeist that drained so quickly under the weight of Australian runs at Lord's, says Kevin Garside
Women's Open 2015: Charley Hull - 'I know I'm a good golfer but I'm also just a person'

Charley Hull: 'I know I'm a good golfer but I'm also just a person'

British teen keeps her feet on ground ahead of Women's Open
Turkey's conflict with Kurdish guerrillas in Iraq can benefit Isis in Syria

Turkey's conflict with Kurdish guerrillas in Iraq can benefit Isis in Syria

Turkish President Erdogan could benefit politically from the targeting of the PKK, says Patrick Cockburn
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn or a return to a Labour government

Our choice is years of Tory rule under Corbyn or a return to a Labour government

Yvette Cooper urged Labour members to 'get serious' about the next general election rather than become 'a protest movement'