There are several individuals or organizations responded to the scandal. First of all, it’s the bank itself. HSBC started to response to the scandal by themselves before everyone else. According to “Insight: Brand Health Check-HSBC cleans up after money laundering,” “HSBC began phasing out ‘The world’s local bank’ tagline in 2011; it called a global creative review in October; the bank has been accused of laundering money for organized criminals and terrorists.” Since the laundering scandal affected the satisfaction and expectation of HSBC’s customers and the banking industry, HSBC need to enforce their responsibility in order to “win over skeptics”. Also, the government showed a strong attitude in responding to the laundering scandal that HSBC have to face the money laundering problem. According to the news, “the Government has rejected calls from Labour for former HSBC chief executive Lord Green to be called to answer questions in the House of Lords on the issue of money laundering by the bank”. Later on, HSBC’s head of compliance David Bagley resigned.
Referrences:
“Insight: Brand Health Check – HSBC Cleans Up After Money Laundering.” Campaign Asia-Pacific (2012): 23. Business Source Complete. Web. 13 Apr. 2013
Tolley, Steve. “Govt Rebuffs Call For Lord Green To Face Questions Over HSBC Money Laundering.” Money Marketing (Online Edition) (2012): 1. Business Source Complete. Web. 13 Apr. 2013.
Stephanie, you are completely right about identifying the government as a key player in the response to the HSBC scandal. However, the regulators in charge of the audit of HSBC failed to come down efficiently on the bank for its wrongdoings. According to NBC News, the findings of HSBC’s money laundering date back to 2001 and “the report caps a year-long inquiry that included a review of 1.4 million documents and interviews with 75 HSBC officials and bank regulators…and also contained strong criticism of the OCC, saying the regulator failed to crack down on the bank despite multiple red flags, allowing money laundering issues ‘to accumulate into a massive problem’. This really points to a lack of appropriate response on the regulators part and a very much delayed reaction from the government to intervene. I believe since this was so under the radar many consumers are just now getting a chance to voice their opinion. It only now has become a very public problem.
Jamieson, Alastair. “ HSBC allowed money laundering that likely funded terror, drugs”. NBC News –
Business. February 2012. Online. April 22, 2013.
http://www.nbcnews.com/business/report-hsbc-allowed-money-laundering-likely-funded-terror-
drugs-889170>