9/2022 HSBC was accused in 2012 of degenerating into a "preferred financial institution" for Mexican and Colombian drug cartels and other wrongdoers through what the U.S. Department of Justice (DoJ) called "stunning failures of oversight"

September 2, 202212:44 AM MSTLast Updated 5 months ago

Fed ends decade-long enforcement action against HSBC

Reuters

SINGAPORE, Sept 2 (Reuters) - The U.S. Federal Reserve has terminated a decade-long enforcement action against HSBC Holdings PLC under which Europe's biggest bank by assets was ordered to improve practices after violating money laundering and sanction rules.

London-headquartered HSBC was accused in 2012 of degenerating into a "preferred financial institution" for Mexican and Colombian drug cartels and other wrongdoers through what the U.S. Department of Justice (DoJ) called "stunning failures of oversight".

The bank agreed to pay a then-record $1.92 billion in fines and abide by a business improvement order after acknowledging it failed to maintain an effective program against money laundering and conduct basic due diligence on some of its account holders.

"Over the last decade HSBC's employees have worked hard to transform the bank's financial crime risk management capabilities," the bank said in a statement."

January 3, 2010 Lead lenders to Asarco have closed syndication of a $1.5bn acquisition facility

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Latin American Financial Publications, Inc, daily briefs, 2010 "asarco wraps up jumbo syndication" 

  

January 3, 2010

Lead lenders to Asarco have closed syndication of a $1.5bn acquisition facility, wrapping up one of last year’s largest M&A financings. The bankrupt mining unit which is being acquired by Grupo Mexico was given a firm commitment from a top tier of 4 banks – Credit Suisse, Inbursa, BBVA and Calyon – in August and the deal funded in the second week of December with an additional 3 banks, Citi, BofA-Merrill and Scotia. On December 21, the top 7 banks concluded general syndication, bringing in 4 more lenders. Banco de Credito del Peru, Natixis, HSBC and Caterpillar all took tickets of over $60m each, according to a senior lender to Asarco. The BBB minus deal consists of 3 and 5-year dual currency funds. The 5-year piece pays 425bp over TIIE or Libor, based on a rating grid while the 3-year pays 375bp. Some two thirds of the 5-year was heard accounted for in MXP funds just prior to closing of general syndication. Fees for the final round of distribution stand at 150bp for $60m tickets, 125bp for $30m and 75bp for $15m pieces. “One of the important features of this deal was giving lenders flexibility in terms of maturity and currency,” says a banker on the deal, referring to the 3 and 5-year option, as well as the MXP and USD choice lenders were given. “And of course a good risk/reward relationship,” he adds. “Other deals may be able to benefit from this because it shows people are prepared to put money to work for the right combination of price and [strong corporate] name,” concludes the syndications executive. In mid-November, GMexico’s proposal to acquire Asarco won a favorable decision from a US court. GMexico’s plan calls for $2.2bn in cash injection to Asarco, as well as use of $1.4bn of cash on hand from Asarco's balance sheet. It also proposes guaranteeing Asarco’s issuance of a $280m promissory note payable to asbestos creditors, forgiving $161m in tax obligations to subsidiary AMC, and allowing Asarco to keep a $60m tax refund. Cleary Gottlieb advised lead lende

M&A

Lead lenders to Asarco have closed syndication of a $1.5bn acquisition facility, wrapping up one of last year’s largest M&A financings. The bankrupt mining unit which is being acquired by Grupo Mexico was given a firm commitment from a top tier of 4 banks – Credit Suisse, Inbursa, BBVA and Calyon – in August and the deal funded in the second week of December with an additional 3 banks, Citi, BofA-Merrill and Scotia. On December 21, the top 7 banks concluded general syndication.....