HSBC has been in the news a lot just recently and the UK Parliament Public Accounts Committee (PAC) were grilling three more executives on Monday 9 March to delve further into the tax evasion scandal that happened at the banks Swiss subsidiary. It was a grueling encounter even for the most hardened company executive not helped by the live television screening which no doubt provided some members of the PAC with the opportunity to play to the camera.
Both the Chairman and CEO of the banking behemoth HSBC have recently appeared before the Treasury Committee of the UK Parliament in connection with the Swiss Tax Scandal . The bank’s Board had previously issued an apology for the scandal to its shareholders and the public in general .
The argument made by the HSBC Board is basically “We didn’t know, how could we? We are a huge organization. It would not happen today”.
Ignorance is bliss.
The S& P saga rumbles on. Having been hammered by the US Securities and Exchange Commission (SEC) in January , S&P has received a knock-out blow, and a $1.375 billion fine, from the US Department of Justice and 20 State governments . And in what might the first of many private actions, S&P also reached a separate $125 million settlement with the huge pension fund California Public Employees’ Retirement System (CALPERS) .
What has received little publicity, however, are the implications of the S&P settlement with regard to Corporate Governance, in general, and Codes of Conduct in particular.
Continue reading “Does the S&P Settlement change EVERYTHING?”