HSBC sets aside $2bn to cover fines - Is this what Banks were invented for ?

Yesterday

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9437527/HSBC-chief-apologises-for-shameful-scandal.html


Says :


In total, Britain’s largest bank said it had set aside $2bn in the first half of the year to cover the cost of "money laundering" as well as compensating UK customers "mis-sold payment protection insurance" and "interest rate swaps".

For a common man like me these 3 world are as alien as some other complex financial terms e.g. (LEAPS Derivatives, Exotic option, Tangible Common Equity ).

But one thing is pretty clear and that is NONE of these "Activities" are at the core definition of  Bank as per me.

Bank was invented to reduce risk for lender (saver) and  provide credit to good Borrowers (Typically entrepreneurs)

None of these word sound close to this basic function of Bank.

u Deserve it HSBC !! Unfortunately those 2 billion which u are set aside are not your money by any chance.. they are of common people and when u give it to any governments common man will feel that their robbed money is given to Governments ...as always without asking them ....


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