LONDON – Shares in HSBC Holdings Plc were down 0.3 percent in early trading in London after the bank said it has agreed to pay $1.9 billion to settle a U.S. probe into money-laundering lapses.
HSBC admitted to a breakdown of controls and apologized in a statement announcing it had reached a deferred-prosecution agreement with the U.S. Department of Justice.
Shore Capital analyst Gary Greenwood said the settlement had been well flagged and was largely anticipated by the market.
Oriel Securities said the fine was higher than expected but removed a long-running investment uncertainty.
(Reporting by Matt Scuffham)