LONDON (AP) – HSBC executives offered a fresh mea culpa Monday as its chief executive found himself personally mired in the scandal surrounding allegations that the bank helped wealthy clients dodge taxes.
Europe’s biggest bank by market value said past practices at its Swiss private bank were “unacceptable” as it reported that 2014 net income fell 16 percent to $13.7 billion. Meanwhile, Britain’s Guardian newspaper reported that Chief Executive Officer Stuart Gulliver had an account at the same unit.
On a conference call with reporters, Gulliver said he opened the account through a Panamanian company to protect his own privacy because other executives at HSBC’s Hong Kong offices were able to see what their colleagues were earning.
The account “enabled me him to have confidentiality within my own firm,” he said.
While Gulliver insisted that he had paid all tax due on the money in the account – reportedly more than 5 million pounds ($7.7 million) – the Guardian’s story offered fresh embarrassment for a business reeling from allegations that forced it to publicly apologize last week.