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HSBC bosses apologise for 'unacceptable' practices | HSBC bosses apologise for 'unacceptable' practices |
(35 minutes later) | |
The two top HSBC bosses have apologised for "unacceptable" practices at its Swiss private bank which helped clients to avoid tax. | |
Stuart Gulliver, group chief executive, said it had caused "damage to trust and confidence" in the company. | Stuart Gulliver, group chief executive, said it had caused "damage to trust and confidence" in the company. |
He and chairman Douglas Flint were answering questions from UK Members of Parliament. | He and chairman Douglas Flint were answering questions from UK Members of Parliament. |
Mr Flint said he felt shame and would "take his share of responsibility" for Swiss private bank failings. | Mr Flint said he felt shame and would "take his share of responsibility" for Swiss private bank failings. |
When asked about the list of allegations and investigations into HSBC by international regulatory authorities Mr Flint said: "it's a terrible list." | When asked about the list of allegations and investigations into HSBC by international regulatory authorities Mr Flint said: "it's a terrible list." |
Despite reforms, he said he could not exclude the possibility of further problems emerging, | Despite reforms, he said he could not exclude the possibility of further problems emerging, |
He said the task of reforming HSBC will "always be ongoing". | He said the task of reforming HSBC will "always be ongoing". |
Information about some 30,000 accounts at the Swiss operation were leaked to French tax authorities in 2007. | |
When asked by MPs who was most responsible for the problems in HSBC's Swiss private bank, Mr Flint said: "The individuals most accountable for the data theft and the behaviour that was unacceptable to our standards, was the management in Switzerland. | |
"Most culpable were the relationship managers [in the Swiss private bank]." | |
Mr Flint estimated that some 30% of those relationship managers were still employed by HSBC. | |
No tax purpose | |
Mr Gulliver, who has worked for HSBC for 35 years and became chief executive in 2011, told the committee that his personal holding of a Swiss bank account through a Panamanian company had "no tax purpose". | |
He said the arrangement only reflected a desire for privacy from his colleagues at HSBC in Hong Kong. | He said the arrangement only reflected a desire for privacy from his colleagues at HSBC in Hong Kong. |
He said: "It was purely about privacy from colleagues in Hong Kong and Switzerland. We had a computer system back in the day that allowed everybody to inquire into staff accounts ... I was amongst the highest paid people and I wished to preserve my privacy from colleagues. Nothing more than that." | |
Mr Gulliver told the committee he had "followed the letter of the law" of the UK non-domicile rules, | Mr Gulliver told the committee he had "followed the letter of the law" of the UK non-domicile rules, |
He said: "The important point is I've paid UK tax on my HSBC earnings during that entire period [since being based in the UK], so the amount of tax I have paid is the fair and appropriate amount." | He said: "The important point is I've paid UK tax on my HSBC earnings during that entire period [since being based in the UK], so the amount of tax I have paid is the fair and appropriate amount." |