Howard Mustoe and Gavin Finch, ©2012 Bloomberg News
Updated 11:06 p.m., Monday, November 5, 2012
(Updates with lawyer’s comment in 16th paragraph.)
Nov. 5 (Bloomberg) — HSBC Holdings Plc said it’s likely to face criminal charges from U.S. anti-money-laundering probes and the cost of a settlement may “significantly” exceed the $1.5 billion the bank has set aside.
The lender made an additional $800 million provision in the third quarter to cover a potential settlement, adding to the $700 million it had already earmarked. HSBC also put aside $357 million in the period to compensate U.K. clients wrongly sold payment-protection insurance on loans as it posted an increase in pretax profit that missed analysts’ estimates.