DOJ Letters to HSBC Account Holders May Spell Trouble for Bank, Practitioners Say

The Department of Justice’s round of letters informing U.S. clients of banking giant HSBC that they are under criminal investigation for failure to disclose interests in foreign accounts may be a precursor of trouble for the bank as the government’s worldwide investigations grow, practitioners told BNA in recent interviews.

“I think the Department of Justice is trying to decide how tough they’re going to be on HSBC,” Bryan Skarlatos, Kostelanetz & Fink LLP, New York, said July 16, following news about the letters in early July (127 DTR GG-1, 7/6/10). “They’re going around contacting taxpayers and they will ...