HSBC chief kept millions in Swiss account: report

LONDON, United Kingdom - HSBC chief executive Stuart Gulliver, who vowed to reform the scandal-hit bank, kept millions of dollars in a Swiss account, the Guardian newspaper reported on Sunday.

It is the latest in a stream of so-called "Swissleaks" allegations that have hit the reputation of the British banking giant and caused a political storm ahead of a general election in May.

The report claims the chief executive was a client of the Swiss private banking arm accused of helping wealthy clients evade tax.

Gulliver held about $7.6 million (6.7 million euros) in 2007 in a Swiss account in the name of Worcester Equities Inc, a Panama-registered company, according to the report.

Gulliver, who is based in Britain but is domiciled in Hong Kong for legal and tax purposes, was listed as the beneficial owner of the account, the report said.

It was published on the evening before Gulliver is due to present HSBC's annual report, expected to be overshadowed by a scandal that has prompted investigations of the bank by Britain's financial watchdog and Swiss authorities.

HSBC did not immediately respond to a request for comment by AFP.

However, a representative for Gulliver told the Guardian that the chief executive had used a Swiss account to hold his bonus payments prior to 2003, when he moved from Hong Kong to London.

Gulliver's lawyers said that Hong Kong tax had been paid on this income and that his Swiss accounts had been declared to British tax authorities.

British newspapers published a letter from Gulliver apologising for the Swiss division's behaviour in full-page advertisements last week.

Gulliver insisted the Swiss arm had been "completely overhauled" since 2007, when former employee Herve Falciani stole a huge cache of data and passed it to French authorities.

British tax authority HM Revenue and Customs (HMRC) officials, accused of failing to act adequately on evidence of tax evasion in the files, are to be grilled by members of parliament on Wednesday.

source: www.abs-cbnnews.com

Meet the banker-priest in eye of SwissLeaks storm

LONDON - The man at the centre of the SwissLeaks tax scandal in Britain is a soft-spoken Church of England clergyman who turned HSBC into Europe's biggest bank, and was once seen as a model of ethics in finance.

HSBC's former chief executive and chairman, Stephen Green, used to be courted for his advice by politicians of all stripes and by the Anglican hierarchy, but now he finds himself widely shunned.

The ex-banking titan was pursued down a London street by a BBC journalist this week in the wake of the revelations, refusing to answer questions.

"I'm not prepared to make any comments about HSBC business past or present," the 66-year-old Green said before walking off, clutching his briefcase.

Growing pressure may force him to change his mind.

Green has been asked to testify before a British parliamentary committee which is investigating who knew what, when about alleged tax dodging strategies on accounts containing tens of billions of pounds.

The fall from grace has been particularly astonishing for a man praised for steering HSBC through the global financial crisis without the bailouts using taxpayer money that other banks resorted to.

'Powerful philosophy'

The son of a lawyer, Green began his career with the management consultancy McKinsey in 1978 and joined HSBC in 1982, rising to the top of an institution with its historical roots in the British empire.

As he rose through the ranks in his 28-year career with the bank , he was also ordained as an Anglican clergyman in 1988. He has spoken frequently about the need for an ethical approach in banking.

He has written a book entitled "Serving God? Serving Mammon?" about how to reconcile being a Christian with working in finance, as well as calling for "enlightened" capitalism.

The links between the Church of England and the world of business are not so unusual and there are many ordained clergy in secular employment.

Since his retirement, Green has also advised the Church of England on how to reform its hierarchy -- putting forward proposals that have proved controversial as being too business-minded.

In a letter in the Guardian this week, a fellow clergyman, Reverend Paul Nicolson from the campaign group Taxpayers Against Poverty, criticised Green.

"The Rev Stephen Green’s chairmanship of HSBC while legal tax avoidance and illegal tax evasion were taking place raises important questions for the Church of England about the role of all clergy in secular employment," Nicolson wrote.

The focus of the political controversy over Green, however, has been his time in government in a period after the revelations about HSBC's Swiss private banking arm first surfaced in 2007.

In September 2010, Green announced he would join Cameron's coalition government as an unpaid minister of state for trade and later that year, he was made a life peer as Lord Green of Hurstpierpoint.

Conservative Prime Minister David Cameron, however has pointed out that the HSBC revelations first came out when the opposition Labour party was in power.

They too have worked with Green, who was a top business advisor to former prime minister Gordon Brown.

When he was appointed to government in 2010, business secretary Vince Cable said Green was "one of the few to emerge with credit from the recent financial crisis.

Green, he said, was "somebody who has set out a powerful philosophy for ethical business".

source: www.abs-cbnnews.com