On Tuesday, Bank of America Merrill Lynch analyst Michael Helsby highlighted that the settlement puts a floor on HSBC's exposure to anti-money laundering violations, but noted litigation remains a risk for the bank.
"While the settlement with the US authorities may draw a line under these specific AML related issues, HSBC remains subject to a number of significant litigation Issues," wrote analyst Michael Helsby in the report, citing the bank's continued exposure to a $9 billion class action lawsuit related to Bernard Madoff's Ponzi scheme, Libor-related lawsuits, and a $3.5 billion claim tied to practices at its former US lending arm Household, among others.
Helsby gives the bank an underperform rating.
Other European banking conglomerates have also come under scrutiny for violating anti-money laundering controls. On Monday, Standard Chartered (LON:STAN)
In June, ING (NYSE:ING) settled with US authorities over restricted payments to Iran and Cuba for $619 million.
Meanwhile, over a dozen global banks face regulatory fines related to the manipulation of short-term interest rates. In June, Barclays (NYSE:BCS) paid $450 million to settle a host of rate manipulation allegations with global regulators that signaled widespread fraud in the market.