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HSBC bosses apologize for tax scandal

Wednesday, 25 February 2015 7:15 PM [ Last Update: Wednesday, 25 February 2015 7:44 PM ]

AFP photo shows HSBC Chief Executive Stuart Gulliver (R) and HSBC chairman Douglas Flint (L) giving evidence at a Treasury Committee hearing on February 25.

A British economic commentator says the recent HSBC scandal is likely to affect the UK government’s tax revenues.

“It would affect and it probably has affected the amounts of tax revenues that the government has been able to bring in, because people have been taught how to avoid tax," Sean O’Grady, the finance editor of The Independent newspaper told Press TV on Wednesday.

Meanwhile, two senior HSBC managers Stuart Gulliver and Douglas Flint apologized for practices at the banking giant's Swiss branch which helped clients to avoid UK tax.

The two HSBC executives were summoned by the British MPs to answer questions about the scandal.

“I would like to put on the record an apology,” said HSBC chief executive Stuart Gulliver, admitting that the scandal caused “damage to trust and confidence” in the banking giant.

Lost trust

London-based economic commentator Sean O’Grady believes that apology cannot restore trust in the UK’s biggest bank.

“The apology won’t restore that trust. I think what people need to see is banks making much more effort to make sure that they cooperate with the taxes authorities in every country and make sure the people pay their fair share of tax. So they will be judged very much on their actions rather than their words,” Sean O’Grady noted.

The British banking giant has already reported a big fall in its 2014 profits.

Earlier this week, HSBC announced that it encountered a 16% fall to nearly 14 billion dollars in its net profits last year, which it blames on the negative effect of fines and compensations.

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