HSBC Hires KPMG Partner for Compliance After Bagley Quit

HSBC Holdings Plc, Europe’s largest bank, hired Ruth Horgan as global head of regulatory compliance after David Bagley quit in July over the lender’s failure to guard against money laundering.

Horgan joins from accounting firm KPMG LLP, where she had been a partner since 1999 and had worked on the team auditing HSBC until March 2010, the London-based bank said today in a statement.

Horgan has “deep knowledge of the industry with almost 25 years of experience in the financial sector specializing in retail, corporate and investment banking,” HSBC said in the statement.

Bagley in July told a Senate hearing he would step down as head of group compliance amid claims the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. The bank last month agreed to pay $1.9 billion to close a global money-laundering probe by the U.S. Department of Justice and banking regulators in the U.S. and U.K.

Bagley was among HSBC executives who testified before the Senate’s Permanent Subcommittee on Investigations after the panel released a 335-page report describing a decade of compliance failures by the bank. A day before the settlement, HSBC appointed Robert Werner, previously head of the U.S. Treasury Department’s Office of Foreign Assets Control and Financial Crimes Enforcement Network, as head of group financial crime compliance and group money laundering reporting officer.

-- Editors: Jon Menon, Steve Bailey

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