http://www.businessinsider.com/hsbc-ties-to-al-rajhi-bank-2012-7

One of the most damning parts of the report details HSBC's relationship with Saudi based Al Rajhi Bank, a member of Osama bin Ladin's 'Golden Chain' of important Al Qaeda financiers. The relationship has spanned decades, perhaps that is why even when HSBC's own internal compliance offices asked that it be terminated in 2005, even when the US government discovered hard evidence of Al Rajhi's relationship with terrorism, HSBC continued to business with the bank until 2010.

Al Rajhi bank is owned by the billionaire Al Rajhi family and holds $59 billion in assets. It is Saudi Arabia's largest private bank.

From the report (page 194):

It doesn't stop there: Al Rahji is also known for financial services to 9/11 hijacker Abdulaziz al Omari, who was on American Airlines flight 11 (page 201).

Read more: http://www.businessinsider.com/hsbc-ties-to-al-rajhi-bank-2012-7#ixzz22cVBvbvr

There are other connections going on with the bank and money laundering for drug cartels also.

Looks like that 2 Billion they set aside for fines is going to be bit light.

It does look like the moment there is a chink in the armor, then the floodgates will open.  I don't think the fallout for all that has happened with the multinational banks has fully come to roost yet.

If things get real bad, they could end up needing to set aside a LOT more than 2 billion for fines.  They may have to set aside much more to cover a run on the banks.  If the banks end up doing what happened late last decade again, I don't see governments bailing them out this time.  The money isn't there, nor is the popular support.  Hey, maybe the central banks can do some QE to infinity... and beyond.

Looks like they aren't the only British owned US bank with some scandalous ties.

http://buzz.money.cnn.com/2012/08/06/standard-chartered-iran-sanctions/?google_editors_picks=true

Link isn't working, but I saw that.

Wow, glad I didn't list nation of origin, because I thought HSBC was German.  But then, considering the level of corruption about, likes to the UK would make sense here.

You'd probably have been even more confused if you knew what HBSC sood for.

"The Hongkong Shanghai Banking Company."

Though the name does probably clear up why it's british.

Some one beat me to it......

And to add to the person above and that it is a Chinese bank.

In the US it is know as Household Financial. They handle the cards for H and R block and BestBuy.

No... it's a British Bank.

It just sounds Chinese.

It was created when the Brits owned Hong Kong.

It's stationed in Hong Kong but owned by the HBSC holdings group.

a British group.

I'm well aware it is British owned and when it was founded.

Then I don't understand why you'd call it a chinese bank.  

Afterall the HBSC branch that's in trouble and discussed in this article is HBSC USA.   Which is also owned by HBSC Holdings group (UK)

HBSC USA reports directly to HBSC holdings.  They're essentially completely seperate banks if you don't count who they're owned by.