Money laundering investigation casts shadow over HSBC

Adjustments to the fair value of its own debt put a serious dent in the third quarter profits of banking giant HSBC, while the final size of the money laundering fine in the US is casting an enormous shadow over the group.

Adjustments to the fair value of its own debt put a serious dent in the third quarter profits of banking giant HSBC, while the final size of the money laundering fine in the US is casting an enormous shadow over the group.

Reported profit before tax of $3,481m in the third quarter was about half the $7,155m on the corresponding period of 2011, with the group taking a paper-based $5.8bn hit relating to adverse movements on the fair value of its own debt - effectively an increase in the amount it would cost HSBC to go into the market and buy back its own debt,

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