Multiple Compliance Woes Weaken HSBC’s Hand in Settlement Talks, Say Analysts

By Brian Monroe and Brian Orsak

As pressure mounts against HSBC Holdings for purported widespread violations of U.S. regulations, the U.K.-based bank may find it has little wriggle room to negotiate itself out of a costly settlement, say analysts. The bank, which moved its headquarters from Hong Kong to London in 1992, is in talks with U.S. officials over possible regulatory infractions involving anti-money laundering (AML) regulations, sanctions, broker-dealer rules, foreclosure practices, tax-related issues and the potential manipulation of London interbank offered rates, according to its latest regulatory filing, released Monday. Taken together, the multiple investigations "make it a lot harder at the negotiating table" for...