HSBC to face fine over weak controls

HSBC, Europe's biggest bank, is to apologise to a US Senate hearing next week over less-than-effective anti-money laundering controls. The bank could also face a "hefty fine" from the Department of Justice, according to one analyst.

An internal memo from the chief executive, Stuart Gulliver, states: "We failed to spot and deal with unacceptable behaviour." This comes a fortnight after Barclays was fined a record £290m for attempting to rig Libor rates.

HSBC says that it is co-operating with Libor inquiries around the globe, but that it is not being investigated. "It is right that we are held accountable and that we take responsibility for fixing what went wrong," said Mr Gulliver.

He is not expected to be giving evidence.