HSBC May Face U.S. Charge Upending 2012 Settlement

The video discusses HSBC's legal challenges, starting with a 2012 deferred prosecution agreement (DPA) with the US government due to money laundering allegations involving Mexican drug cartels. HSBC paid a $1.9 billion fine but avoided formal prosecution. Recently, HSBC's currency trader Mark Johnson was arrested in the US, raising concerns about a potential breach of the DPA. This has prompted US regulators to reassess HSBC's compliance. Despite the seriousness of these issues, the market reaction has been muted, with HSBC's stock showing minimal decline. Investors seem to be adopting a wait-and-see approach as the situation unfolds.

What are US regulators currently investigating regarding HSBC?

How did the stock market react to the latest legal issues surrounding HSBC?