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Thursday October 1, 2020

updated - October 1, 2020 Thursday EDT

HSBC Officials Resign Amid Threat to Put them in Jail for Bank Issues

Oct 08, 2014 12:17 AM EDT | By Flynna Sarah Molina
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HSBC, uk, United Kingdom, bank, pra, bank of england
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HSBC
(Photo : http://commons.wikimedia.org/wiki/File:HSBC.svg)

John Trueman and Alan Thomson will quit while plans to make directors held liable of bank failure

Directors of UK branches of HSBC will quit in protest of the new Bank of England regulations that ask officials and executives to be held criminally liable when bank will fail.

Alan Thomson, works of audit and risk department of HSBC Bank will resign this month. On the other hand, John Trueman the deputy chairman of UK operation sees resignation anytime soon.

Their resignation is due to the planned sanction of Prudential Regulation Authority or PRA, the regulatory of Bank of England division, to make directors more responsible and accountable.

The bank will release notice on Alan's departure with Companies House, with John's resignation after if he will finally confirm that he will leave.

The board is open for opinions on the changes of ruling that will make the bank officials be more responsible if they make careless decisions that will be the cause of bank failure.

Trueman and Thomson have thought of reconsidering their positions right after the briefing by HSBC officers. This was after the PRA's statement of the propositions made in July. John has expressed his other commitments, such as being the chairman of Hays, the recruitment organization, as one of the reasons of his resignation.

John served as the director for a decade in HSBC Bank and also the investment banker previous to that. Alan, used to be finance official of Smiths Group, the engineering organization, worked with HSBC UK board last December.

A new regulation for care was released by the FCA is a bigger threat to bank officials than the rate of getting criminal cases since it allows the regulator to decide what sanction to give, according to the lawyer.

Banks are raising complaints that the after-crisis restrictive rules has been too much by strengthening their power to lend and discouraging candidates from participating the board. However, the critics of the banks charging them of diverting the responsibilities away to get rid of possible consequences that caused the financial turmoil.

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