HSBC US executive apologizes for lax controls; says bank has made significant changes

WASHINGTON – The CEO of the U.S. division of the big international bank HSBC is apologizing for lax controls that lawmakers say allowed Mexican drug cartels to launder billions of dollars through the U.S. operation and many other illicit transactions for years.

Irene Dorner, president and CEO of HSBC Bank USA, says in testimony prepared for a hearing by the Senate Permanent Subcommittee on Investigations that “we deeply regret and apologize” for the lapses by HSBC.

An investigation by the subcommittee found persistent problems at HSBC which executives ignored.

Dorner and other HSBC executives scheduled to testify say the bank has made deep changes to its policies and corporate culture to prevent illicit use of the bank.

The panel’s chairman, Sen. Carl Levin or Michigan, says HSBC’s new policies “are all good steps.”