Death Star Economics



HSBC says sorry, Romania fails at impeachment

The BBC homepage says it all. It’s hard to find news between so much live streaming of other people working out.

HSBC announced earnings, including $12.7bn in pre-tax profits and a $2bn buffer for “certain law enforcement and regulatory matters.” I wonder which division generated those $2bn…

All that came nicely wrapped in an apology from CEO Stuart Gulliver for laundering money for Mexican drug lords between 2007 and 2008. Estimates for the fine that is looming for operation Mexico (not the official code name, I think) are at $1bn, so either HSBC expects the fine to be higher, its lawyers to be more expensive or this is cockroach theory live and in action…

Meanwhile, Romania failed at impeaching its president. Votes in the referendum to get rid of president Traian Basescu were at almost 90%, but the overall voter participation was too low to have the referendum count.

Otherwise, this week has a lot of central bank action in stock, with the Fed’s Open Market Committee (FOMC) meeting on Tuesday and Wednesday, and the ECB is meeting on Thursday. Expectations here.

Tim Geither and Wolfgang Schaeuble are meeting to talk next-steps-in-the-crisis today, something that is expected to be anything but a casual afternoon coffee. The US is trying to nudge Germany into being more proactive about the problem children Spain and Italy; Germany, in the other hand, is being German, because oh god, what would we do if there was more inflation… read article

And finally, the UK Treasury is now assessing to set Libor according to actual market data, as opposed to reports by banks.

In terms of Olympics, the FT’s data blog brings us a economic prediction of Olympic medal allocation, relative to population, GDP and past performance. I wonder how they explain how North Korea’s and Kazakhstan’s success in the first two days. read article

So long.

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One Response

  1. […] on a regulatory note, HSBC could be fined up to $1.5bn for money laundering. In July, the US Senate initiated an investigation of the bank’s finances as a response to allegation of money laundering for Mexican […]

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