FTSE 100 LIVE: Markets up in Europe as HSBC fined £57.4m

01/30/2024 16:41
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FTSE 100 LIVE: Markets up in Europe as HSBC fined £57.4m

The Bank of England fined HSBC for 'failures in deposit protection identification and notification'

ftse HSBC's building in Canary Wharf is seen behind a City of London sign outside Billingsgate Market in London, Britain, August 8, 2018. REUTERS/Hannah McKay

HSBC fined £57.4m for ‘serious’ deposit protection failures. The FTSE was higher on Tuesday. (Reuters / Reuters)

  • Markets rose across Europe as the Bank of England's Prudential Regulation Authority (PRA) revealed it had fined banking giant HSBC (HSBA.L) £57.4m for "failures in deposit protection identification and notification".

  • The FTSE 100 (^FTSE) was 0.2% higher after the opening bell, while the DAX (^GDAXI) rose 0.1% and the CAC (^FCHI) headed 0.1% higher.

  • Failings outlined by the PRA included HSBC incorrectly marking 99% of its eligible beneficiary deposits as "ineligible" for FSCS protection; failing to produce finalised versions of annual reports; and a failure to assign clear ownership for the processes required under the Depositor Protection Rules.

Follow along for live updates:

Live4 updates

  • PRA slaps HSBC

    Here's what the two parties said:

    • “The serious failings in this case go to the heart of the PRA’s safety and soundness objective. It is vital that all banks comply fully with our requirements around preparedness for resolution," said Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the PRA. "HBEU fell far short of its obligations in this area, and failed to disclose its failings to us in a timely manner. These failures led to today’s action, including the significant fine.”

    • A spokesperson for HSBC said: "HSBC is pleased to have resolved this historic matter, which relates to the Bank’s compliance with certain parts of the PRA’s Depositor Protection Rules. The PRA’s final notice recognises the Bank’s co-operation with the investigation, as well as our efforts to fully resolve these issues. We continue to remain focused on serving our customers."

  • Overnight in Asia

    Over in Asia, stocks saw another mixed day of trade, with some heavy selling across China. The Hang Seng (^HSI) finished 2.6% lower, while the SSE Composite (000001.SS) was down 1.8%.

    The selling came in the aftermath of the liquidation of an order for the liquidation of Evergrande (3333.HK), the world's most indebted property company. The Hang Seng is down more than 7% alone this month.

    Concerns remain about China's economic growth going forward.

  • Overnight in the US

    US stocks closed in positive territory overnight, ahead of a slew of earnings reports and company updates, as well as an interest rate decision from the Federal Reserve later in the week.

    The S&P 500 (^GSPC) finished 0.7% higher on Monday, while the Dow (^DJI) was up 0.6% and the Nasdaq (^IXIC) gained 1.1%.

    Microsoft (MSFT) is set to report earnings after the bell later on today, while Amazon (AMZN) will reveal all on Thursday.

    More on that here.

  • Good morning!

    Hello! I'm still in Norwich, anticipating a slightly busier day than the calm markets of yesterday. The FTSE 100 looks set to open 0.3% higher. Pan-European Stoxx 600 futures are also up. Later on we've got:

    • Mortgage rates from the Bank of England

    • A run-up to Threadneedle Street's interest rate decision on Wednesday

    • A world economic outlook report from the IMF

    • A GDP read from the EU.

    Let's get to it.

Watch: S&P 500 closes at fresh high ahead of Fed meeting

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