HBSC Facing Court Action from Drug Cartel Victims

Just when you thought that the banking market sector was beginning to stabilise, it does seem that if you are a Binary Options trader you are always going to have plenty of ways of cashing in on the now never ending news stories that are having an effect on the value of shares on many different banking stocks.

We say that for yesterday it was announced that several family members of US citizens who had been killed by a Mexican based drug cartel and now seeking recompense from HSBC as they believe HSBC are guilty of laundering the profits made by those drug cartels.

The one main reason that has possibly spurred on those families to take this action is that it was only recently, back in 2012 that HSBC was fined a huge £1.1bn in the US having been found guilty of laundering the profits of both drug gangs and rogue states, and as such have already been found guilty of doing so compensation is something those families will now be seeking to claim from HSBC.

In fact, during that previous court case it was found that HSBC had such a lax control system in place for verifying where funds from customers came from that they were referred to as the bank of choice for criminals.

This class action lawsuit will be taking place in Texas in a town called Brownsville which is conveniently close to the border with Mexico, but the actual size and value of the claims those families are making has not as yet been revealed.

However, HSBC, as you would expect, are not taking this lawsuit laying down and have stated that they intend to very vigorously defend itself again those claims, and will be putting up robust defence when and if the matter does make it to court as opposed to being settled out of court, which there is currently no obvious chance of it being settled that way.

The value of HSBC shares did not in fact fall as soon as this news was announced, for yesterday the value of HSBC shares on the open market grew in value and closed up 8.9p at 441.4p. However, as a Binary Options trader you should keep your eyes on this story to see how it is panning out as it may open the flood gates for a large number of similar and related claims.