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HSBC Will Close Cayman Islands Branch, Drop Clients
By Colby Adams
printHSBC Holdings Plc will close all of its U.S. accounts in the Cayman Islands after a congressional investigation found that the Caribbean branch functioned solely as a dollar-clearing shell bank. Speaking at a Senate Permanent Subcommittee on Investigations (PSI) hearing Tuesday, David Bagley, HSBC's global compliance chief, said that the bank "has recently arrived at a decision, which I support, which is to close those Cayman accounts." Bagley also told lawmakers he would resign from his role as global compliance chief. The Cayman branch, which has no physical presence and is run by HSBC's Mexico affiliate, held at least $2.1...
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