HSBC Employees pay the price for Executive Corruption

Marianne Zilic

Tuesday, June 09, 2015

HSBC will be laying off 25,000 employees in an effort to cut costs and improve profits and investor confidence.  Earlier this year, HSBC was fined $40 million Swiss Francs ($43 million USD/$53 million Cdn) in order to settle an investigation into HSBC's private Swiss Bank helping rich private clients avoid paying taxes. 

No criminal charges were laid.  According to an HSBC statement, the bank failed to detect money laundering through it's private banking operations.  In other words, their 'internal controls' were insufficient.

As usual, it's the employee who pays the price for a 'lack of internal controls'.  No criminal charges.  Just massive layoffs.

Somehow, I don't think internal controls or a lack of measurement was the issue.  But if it was, this strengthens the case for effective metrics.