HSBC Bank sold its Swiss private banking assets to LGT Bank for 12.5 billion dollar
HSBC sold its Swiss private banking assets to Liechtenstein’s LGT Bank. This deal could have bearing on India’s fight against black money.
Global giant HSBC Bank on 24 June 2014 sold its Swiss private banking assets worth 12.5 billion dollars to Liechtenstein’s LGT Bank. Under the transaction, LGT Bank will acquire over 10 billion Swiss francs in Assets under Management and around 70 staff.
Upon closing, the acquired business will be integrated into LGT Bank (Switzerland) which had AUM of 21 billion Swiss francs (23.5 billion dollars) at the end of 2013.
HSBC Private Bank (Suisse) SA is a wholly-owned subsidiary of UK-based HSBC Holdings Plc whereas LGT Bank (Switzerland) Ltd is a wholly-owned subsidiary of LGT Group Foundation of Liechtenstein.
The impact of the deal on India’s fight on black money
This deal could have bearing on India’s fight against black money as announcement of HSBC-LGT deal came at a time, when Indian government is making attempts to trace alleged black money that is stashed by Indians abroad.
India’s probe against the alleged black money stashed by Indians abroad is being conducted through two banks namely HSBC Geneva in Switzerland and LGT Bank. However, the lists of Indian account holders in both places were received by India through indirect channels -- HSBC list came from France and LGT list from Germany.
But the authorities of Switzerland have refused to provide any assistance or share further information in these cases. This denial to help the Indian authorities was caused because their requests are based on stolen data provided by Germany and France, who got the secret lists of account holders after certain bank employees had stolen the data.