PROJECT REPORT ON

HONG KONG AND SHANGHAI BANKING CORPORATION (HSBC)

IN PARTIAL FULFILLMENT OF THE DEGREE AWARDED AT

B.COM (BANKING AND INSURANCE)SEMESTER V

SUBMITTED TOUNIVERSITY OF MUMBAI

FOR ACADEMIC YEAR 2014 2015

SUBMITTED BY: -

NAME: - MANISH S. NALLELLA

ROLL NO.: - 102

VIVA COLLEGE OF ARTS, COMMERCE AND SCIENCEVIRAR (WEST)401303

ACKNOWLEDGEMENT

I, MANISH S. NALLELLA the student of VIVA Collage pursuing my B.COM (BANKING & INSURANCE), would like to pay the credits, for all those who helped in the making of this project.

The first in accomplishment of this project is our Principal Dr. R.D. Bhagat, Vice Principal Prof. Prajakta Paranjape, Course Co-ordinator Prof. Roshni Nagar and Guide Prof. Audrin Colaco teaching & non teaching staff of VIVA College.I would also like to thank all my college friends those who influenced my project in order to achieve the desired result correctly.

DECLARATION

I hereby declare that the project titled HONG KONG AND SHANGHAI BANKING CORPORATION (HSBC) is an original work prepared by me and is being submitted to University of Mumbai in partial fulfillment of B.COM (BANKING & INSURANCE) degree for the academic year 2014-2015.

To the best of my knowledge this report has not been submitted earlier to the University of Mumbai or any other affiliated college for the fulfillment of B.COM.(Banking & Insurance) degree.

Date: Name: Manish S. NallellaPlace: Sign:

INDEX

SR.NOTOPICPAGE NO.

1HISTORY6-11

2FINANCIAL INCLUSION12-14

3EMPLOYEE VOLUNTEERING15-16

4HSBC HOLDING PLC17-18

5PROJECTS EDUCATION19-22

6PRODUCTS OF HSBC23-29

7OPERATIONS30-35

8GLOBAL PRODUTS LINE36-37

9CORPORATE SUSTAINABILITY38-39

10MONEY LAUNDERING40-41

11OTHER CONTROVERSIES42

12LOGO43

13SPONSORSHIPS44-45

14COMPANY OVERVIEW46

15KEY EXECUTIVES FOR HSBC47

16HSBCS KEY DEVELOPMENTS48-49

17HSBC GROUP MEMBERS50-51

18CONCLUSION52-53

19BIBLIOGRAPHY54

HISTORYOrigins to 2000The HSBC Main Building in 1901 in Hong Kong, the headquarters of the Hong Kong and Shanghai Banking Corporation from 1886 to 1933 for its Hong Kong operation.

The HSBC Building in 2005 in Shanghai, the headquarters of the Hong Kong and Shanghai Banking Corporation from 1923 to 1955 for its Shanghai operation.For more information on the history of HSBC prior to the founding of HSBC Holdings in 1991, see The Hongkong and Shanghai Banking Corporation.The Hong Kong and Shanghai Banking Corporation was founded by Scotsman Sir Thomas Sutherland in the then British colony of Hong Kong on 3 March 1865, and in Shanghai one month later, benefiting from the start of trading into China, including opium trading. In 1980, HSBC acquired a 51% shareholding in US-based Marine Midland Bank, which it extended to full ownership in 1987.HSBC Holdings plc was established in the United Kingdom in 1991 as the parent company to the Hongkong and Shanghai Banking Corporation in preparation for its purchase of the UK-based Midland Bank and the impending transfer of sovereignty of Hong Kong to China. HSBC Holdings' acquisition of Midland Bank was completed in 1992 and gave HSBC a substantial market presence in the United Kingdom. As part of the takeover conditions for the acquisition, HSBC Holdings plc was required to relocate its world headquarters from Hong Kong to London in 1993.Major acquisitions in South America started with the purchase of the Banco Bamerindus of Brazil for $1bn in March 1997 and the acquisition of Roberts SA de Inversiones of Argentina for $600m in May 1997. In May 1999, HSBC expanded its presence in the United States with the purchase of Republic National Bank of New York for $10.3bn

2000 to 2010The HSBC Main Building in Hong Kong, which was designed by Norman Foster and completed in 1985.Expansion into Continental Europe took place in April 2000 with the acquisition of Crdit Commercial de France, a large French bank for 6.6bn. In July 2001 HSBC bought Demirbank, an insolvent Turkish bank. In July 2002, Arthur Andersen announced that HSBC USA, Inc., through a new subsidiary, Wealth and Tax Advisory Services USA Inc. (WTAS), would purchase a portion of Andersen's tax practice. The new HSBC Private Client Services Group would serve the wealth and tax advisory needs of high net worth individuals. Then in August 2002 HSBC acquired Grupo Financiero Bital, SA de CV, Mexico's third largest retail bank for $1.1bn. In November 2002 HSBC expanded further in the United States. Under the chairmanship of Sir John Bond, it spent 9 billion (US$15.5 billion) to acquire Household Finance Corporation (HFC), a US credit card issuer and subprime lender. In a 2003 cover story, The Banker noted "when banking historians look back, they may conclude that [it] was the deal of the first decade of the 21st century". Under the new name of HSBC Finance, the division was the second largest subprime lender in the US. On 22 November 2001, the Hongkong and Shanghai Banking Corp would provide a fixed-rate mortgage to buyers of Cheung Kong (Holdings)' Victoria Towers residential development. The new headquarters of HSBC Holdings at 8 Canada Square, London officially opened in April 2003. In September 2003 HSBC bought Polski Kredyt Bank SA of Poland for $7.8m. In June 2004 HSBC expanded into China buying 19.9% of the Bank of Communications of Shanghai. In the United Kingdom HSBC acquired Marks & Spencer Retail Financial Services Holdings Ltd for 763m in December 2004. Acquisitions in 2005 included Metris Inc, a US credit card issuer for $1.6bn in August and 70.1% of Dar es Salaam Investment Bank of Iraq in October. In April 2006 HSBC bought the 90 branches in Argentina of Banca Nazionale del Lavoro for $155m. In December 2007 HSBC acquired the Chinese Bank in Taiwan. In May 2008 HSBC acquired IL&FS Investment, an Indian retail broking firm. In 2005 Bloomberg Markets magazine accused HSBC of money-laundering for drug dealers and state sponsors of terrorism. Then-CEO Stephen Green said that "This was a singular and wholly irresponsible attack on the bank's international compliance procedures", but subsequent investigation indicated that it was accurate and proved that the bank was involved in money laundering throughout Mexico. U.S. Assistant Attorney General Lanny Breuer characterised HSBC compliance during this period as "stunning failures of oversight and worse ... The record of dysfunction that prevailed at HSBC for many years was astonishing." In March 2009, HSBC announced that it would shut down the branch network of its HSBC Finance arm in the U.S., leading to nearly 6,000 job losses and leaving only the credit card business to continue operating. Chairman Stephen Green stated, "HSBC has a reputation for telling it as it is. With the benefit of hindsight, this is an acquisition we wish we had not undertaken." According to analyst Colin Morton, "the takeover was an absolute disaster".Although it was at the centre of the subprime storm, the wider group has weathered the financial crisis of 20072010 better than other global banks. According to Bloomberg, "HSBC is one of world's strongest banks by some measures". When HM Treasury required all UK banks to increase their capital in October 2007, the group transferred 750million to London within hours, and announced that it had just lent 4billion to other UK banks. In March 2009, it announced that it had made US$9.3bn of profit in 2008 and announced a 12.5bn (US$17.7bn; HK$138bn) rights issue to enable it to buy other banks that were struggling to survive. However, uncertainty over the rights' issue's implications for institutional investors caused volatility in the Hong Kong stock market: on 9 March 2009 HSBC's share price fell 24.14%, with 12million shares sold in the last few seconds of trading.

2010 to 20138 Canada Square, the world headquarters of HSBC in Canary Wharf, LondonOn 11 May 2011 the new chief executive Stuart Gulliver announced that HSBC would refocus its business strategy and that a large-scale retrenchment of operations, particularly in respect of the retail sector, was planned. HSBC would no longer seek to be 'the world's local bank', as costs associated with this were spiralling and US$3.5bn needed to be saved by 2013, with the aim of bringing overheads down from 55% of revenues to 48%. In 2010, then-chairman Stephen Green planned to depart HSBC to accept a government appointment in the Trade Ministry. Group Chief Executive Michael Geoghegan was expected to become the next chairman. However, while many current and former senior employees supported the tradition of promoting the chief executive to chairman, many shareholders instead pushed for an external candidate. HSBC's board of directors had reportedly been split over the succession planning, and investors were alarmed that this row would damage the company. On 23 September 2010, Geoghegan announced he would step down as chief executive of HSBC. He was succeeded as chief executive of HSBC by Stuart Gulliver, while Green was succeeded as Chairman by Douglas Flint; Flint was serving as HSBC's finance director (chief financial officer). August 2011: Further to CEO Stuart Gulliver's plan to cut $3.5 billion in costs over the next 2 years, HSBC announced that it will cut 25,000 jobs and exit from 20 countries by 2013 in addition to 5,000 job- cuts announced earlier in the year. The consumer banking division of HSBC will focus on the UK, Hong Kong, high-growth markets such as Mexico, Singapore, Turkey and Brazil, and smaller countries where it has a leading market share. According to Reuters, Chief Executive Stuart Gulliver told the media, "There will be further job cuts. There will be something like 25,000 roles eliminated between now and the end of 2013." In August 2011 "to align our U.S. business with our global network and meet the local and international needs of domestic and overseas clients", HSBC agreed to sell 195 branches in New York and Connecticut to First Niagara Financial Group Inc for around $1 billion and announced the closure of 13 branches in Connecticut and New Jersey. The rest of HSBC's U.S. network will only be about half from a total 470 branches before divestments. On 9 August 2011, Capital One Financial Corp. agreed to acquire HSBC's U.S. credit card business for $2.6 billion, netting HSBC Holdings an estimated after-tax profit of $2.4 billion. In September it was announced that HSBC seeks to sell its general insurance business for around $1 billion.In 2012, HSBC was the subject of hearings of the U.S. Senate permanent subcommittee for investigations for severe deficiencies in its anti money laundering practices. On 16 July the committee presented its findings. Among other things it concludes that HSBC has been transferring $7 billion in banknotes from its Mexican to its US subsidiary, much of it related to drug dealing, was disregarding terrorist financing links and was actively circumventing U.S. safeguards to block transactions involving terrorists, drug lords and rogue regimes, including hiding $19.4 billion in transactions with Iran.In July 2012 HSBC came under investigation for allegedly assisting in the money laundering of drug dealers and terrorist money for many years, after a probe by the US Federal Reserve and Office of the Comptroller of the Currency found that there was "significant potential for unreported money laundering or terrorist financing".On 11 December 2012, HSBC agreed to pay a record $1.92 billion fine in this money laundering case. "Bank officials repeatedly ignored internal warnings that HSBC's monitoring systems were inadequate, the Justice Department said. In 2008, for example, the CEO of HSBC Mexico was told that Mexican law enforcement had a recording of a Mexican drug lord saying that HSBC Mexico was the place to launder money." The DOJ, however, decided not to pursue criinal penalties, a decision which the New York Times labelled a "dark day for the rule of law"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again." HSBC Chief Executive Stuart Gulliver said. A 32-page brochure published on the HSBC website provides details of 2012 results in terms of markets, strategies, and businesses, as well as giving an outline of future plans. In July 2013, Alan Keir was appointed Chief Executive of HSBC Bank plc after Brian Robertson resigned from his post. Keir's duties include overseeing the firm's UK, European, Middle Eastern and African divisions.

Since 2013In June 2014, an indirect wholly owned subsidiary HSBC Life (UK) Limited agreed to sell its 4.2 billion UK pensions business to Swiss Re.

FINANCIAL INCLUSION

Education

HSBC partners with nongovernmental organisations across the country, which works with children from underprivileged communities. Our project support helps children go to school, learn in a joyful environment and learn to live a healthy life. We also work with young adults to provide vocational training and life skills so that they are able to help themselves lead a productive life.At HSBC we believe "Education is key to every success". Educational initiatives at HSBC provide opportunities to underprivileged children to explore their untapped potential and equip them with necessary skills and qualifications. Our project support helps children to go to school, learn in a joyful environment and learn to live a healthy life. We also work with young adults to provide vocational training and life skills so that they are able to help themselves lead a productive life.

Life SkillsLife skills programmes supported by HSBC provides tailor made training to underprivileged youth. Youth are enabled to gain access to opportunities for sustainable livelihoods and financial literacy to help them lead a productive life.

Womens EmpowermentThe plight of women in rural India is well documented. The pressure on survival against the backdrop of poor or no education, failing health, low agricultural productivity and degradation of environment, affects women and children the most. In a majority of cases, in the modern India of today, women are still unable to break out of vicious cycle of gender bias, deprivation and victimization, imposed on them, sometimes by tradition, and at other times by their economic environment and compulsions. One way of resolving this dilemma is to devise financial literacy programmes, which intervene in the lives of rural poor women. HSBC supports projects that provide entrepreneurial trainings and information access to make dignified economic opportunities and self-sufficiency a possibility.

The HSBC Scholarships ProgrammeThe programme aims to nurture leaders around the world and help build global knowledge with the accompanying expectation that the lifelong careers of the scholarship recipients will be marked by significant contributions to the community in which they live and work. Over time, the HSBC Scholars will form an influential international alumni network, bringing vision and commitment to improving lives of citizens throughout the world. The scholars are thus expected to use their education for the benefit of others.A total of 15 scholarships have been awarded till date.

Future First - Investing in our ChildrenLaunched in November 2006, Future First is a 5year, US$ 10 million initiative of the HSBC Global Education Trust to provide education and life skills training to street children, orphans and children in care in countries where HSBC has a presence. The programme aims to deliver a lasting impact in the lives of these children by offering support to local notforprofit organisations working directly with underprivileged children and SOS Childrens Villages the worlds largest charity for orphans. As part of this initiative, projects are considered for support of upto US$ 25,000 per year for a period of 1 to 3 years. As of March 2008, Future First has supported over 115,767 children through 111 projects across 37 countries.

LivelihoodsHSBC works in partnership with SHARE (Society to Heal, Aid, Restore and Educate) and SCESA (Sophia College ExStudents Association) in Raigad district to empower villagers through Rain Water Harvesting techniques and small economic activity. Establishing women SHGs and providing economic independence to women in villages have created life of dignity, respect and happiness.

MicrofinanceHSBC started with a lending programme for small Microfinance Institutions (MFIs) in 2005, but after having built up a reasonable degree of understanding of this segment, have started offering commercial loan products to large MFIs also to help them provide micro credit to the financially excluded in India. These institutions provide small loans to groups of poor people (mostly women) using wellestablished micro credit delivery methodologies. We have sanctioned facilities totalling INR 660M between JanApr08 to MFIs and presently the total number of members covered by MFIs, which have accepted our facilities, is 3.2M.In 2008, we have put in place a microfinance strategy, with the objective of increasing our presence in this segment and building around a lending portfolio, a host of services which can facilitate capacity building, improve operational efficiency and bring the best practices of a transactional banking business to the microfinance domain.

EnvironmentHSBC India supports nature, habitat and biodiversity conservation, water harvesting and climate change initiatives. These projects are designed to ensure that economic development does not take place at the expense of the environment and the awareness component ensures that a large number of varied audiences are exposed to environmental messages.

EMPLOYEE VOLUNTEERING

Employees are encouraged to participate in the community projects supported by HSBC. HSBC launched Employee Volunteering in India in 2007 in a new format to enhance volunteering participation. The programme has been named Catalyst and has being deployed across HSBC branches and Group Companies in India. Annual Helping Hands Mela:HSBC employees organises a pan India activity at HSBC branches to encourage charitable giving through sale of products designed by NGOs and communities.

Junior Achievement Mentoring Programme: Employees from HSBC Chennai are educating students about entrepreneurship, work readiness, and financial literacy through experiential, handson programmers.

Kuch Dil Se Payroll Giving Programme:Employees donate monthly to charities working in the education and environment space through a payroll debit programme implemented in partnership with Give Foundation.

Mumbai Marathon 2008:90 employees ran the Mumbai Marathon and raised pledges for SPJ Sadhana School for the Developmentally Handicapped, to enable differentially abled children avail of opportunities to study, experience and enjoy their childhood thus empowering them to lead a constructive and selfreliant life.

HSBC Climate Champions 2008:Under the HSBC Climate Partnership, employees are given an opportunity to volunteer in projects to fight climate change and drive environmental changes and practices within the organisation. In 2008, 13 colleagues have been chosen from India to be HSBC Climate Champions and to participate in a twoweek regional field programme in a rainforest in Malaysia.

World Environment Day 2008:India was one of the 20 countries within the HSBC Group that participated in celebrating World Environment Day on 05 June 2008. About 1000 employees across India participated in various environment projects supported by HSBC and clocked over 8000 volunteering hours in the community.

Breaking Barriers Celebrating with a Difference:HSBC offers employees an opportunity to celebrate their success through participating in community events and sharing their stories. Called Breaking Barriers, this businesscommunity engagement format has been utilised by numerous businesses and functions to celebrate their success with team members and community. HSBC Marketing team of 60 members visited three villages in Raigad district and engaged with the community in building trenches and understating watershed development projects, teaching children and engaging with Self Help Groups (SHGs) and villagers.

Volunteering Action Fortnight:First Volunteering Action Fortnight was celebrated between 14 28 November 2006 across India which received an overwhelming response from employees. Large number of employees from all branches, departments and Group Companies participated enthusiastically and engaged with NGOs/Communities to understand their work. More than 4000 volunteering hours was recorded in the fortnight with over 400 employees participating. This continues to be an annual event for employees to volunteer in large numbers.

HSBC HOLDINGS PLC

TypePublic limited company

TradedasLSE:HSBASEHK:0005 NYSE:HSBC

IndustryBanking, Financial services

Founded1865, Hong Kong (The Hongkong and Shanghai Banking Corporation)1991 (HSBC Holdings plc)

FoundersThomas Sutherland

Headquarters8 Canada Square,Canary Wharf,London, United Kingdom

Area servedWorldwide

Key peopleDouglas Flint(Group Chairman)Stuart Gulliver(Group Chief Executive)

ServicesCredit cards, consumer banking, corporate banking, investment banking, mortgage loans, private banking, wealth management

RevenueUS$ 68.18billion (2013)

Operating incomeUS$22.56billion (2013)

ProfitUS$16.20billion (2013)

Total assetsUS$2.671trillion (2013)

Total equityUS$181.8billion (2013)

Employees254,066 (2013)

SubsidiariesHSBC Bank plc, The Hongkong and Shanghai Banking Corporation, HSBC GLT India, HSBC Bank USA, HSBC Bank Middle East, HSBC Mexico, HSBC Bank Brazil, HSBC Finance, HSBC GLT Malaysia

Websitewww.hsbc.com

HSBC Holdings PLC is a British multinational banking and financial services company headquartered in London, United Kingdom. It is the world's second largest bank. It was founded in London in 1991 by the Hongkong and Shanghai Banking Corporation to act as a new group holding company. The origins of the bank lie in Hong Kong and Shanghai, where branches were first opened in 1865. The HSBC name is derived from the initials of the Hongkong and Shanghai Banking Corporation. As such, the company refers to both the United Kingdom and Hong Kong as its "home markets".HSBC has around 6,600 offices in 80 countries and territories across Africa, Asia, Europe, North America and South America, and around 125 million customers. As of 31 December 2013, it had total assets of $2.671trillion, of which roughly half were in Europe, the Middle East and Africa, and a quarter in each of Asia-Pacific and the Americas. As of 2012, it was the world's largest bank in terms of assets and sixth-largest public company, according to a composite measure by Forbes magazine. HSBC is organised within four business groups: Commercial Banking; Global Banking and Markets (investment banking); Retail Banking and Wealth Management; and Global Private Banking.HSBC has a dual primary listing on the Hong Kong Stock Exchange and London Stock Exchange and is a constituent of the Hang Seng Index and the FTSE 100 Index. As of 6 July 2012 it had a market capitalisation of 102.7billion, the second-largest company listed on the London Stock Exchange, after Royal Dutch Shell. It has secondary listings on the New York Stock Exchange, Euronext Paris and the Bermuda Stock Exchange.

PROJECTS EDUCATION

HSBC partners with nongovernmental organizations across country that works with children from underprivileged communities. Our support helps children go to school and learn in a joyful environment. Some of the educational projects supported by HSBC India are:

SOS Children's Villages:HSBC supports the work of SOS Children's Villages in New Delhi, Kolkata, Bhuj, Anagpur and Latur. SOS India's mission is to provide abandoned and orphaned children with a family, a home, education and a foundation for an independent life.

Child link Foundation (Magic Bus):HSBC supports a group of street children between the age of 810 years at Magic Bus by facilitating their nonformal education through outdoor sports, day trips and weekend trips.

HSBC Gijubhai BAL Academy with Ganatar, Patadi, Surendranagar district, Gujarat:HSBC works with Ganatar to educate children of salt pan workers by establishing schools in desert communities. On campus, Ganatar conducts teacher training programmes and vocational courses for children from the Raan of Kutch.

Happy Home and School for the Blind, Mumbai:Happy Hope imparts education for blind and visually impaired children. HSBC provides support to their annual pottery workshop and exhibition.

Future Hope:is a home and school for street children in Kolkata, supported by HSBC through annual donations.

Prayas:Prayas works for the care, protection and rehabilitation of neglected street and working children. HSBC supports the Naya Prayas project in Delhi slums and helps provide outofschool children with education.

Doorstep School:Doorstep school works in slum communities around Mumbai's port areas to establish Early Childhood Education (ECE) centers. It is an effort to commence a systematic and early educational intervention in the lives of the children from the community.

SUPPORT:SUPPORT helps children on street of Mumbai who are prey to drug abuse, crime and disease by mainstreaming them and offering complete rehabilitation. It provides an opportunity for better life for these children through education, medical care, return to families/ parents, vocational training and livelihood assistance.

Sense International (India):Sense International (India) is a leading organization in South Asia developing programmes for deaf blind people. They enable and empower local partners to provide direct services to deaf blind people. As a result of their work there are now 33 deaf blind programmes in 17 different states of India.

Nanhi Kali:A project jointly managed by K. C. Mahindra Education Trust and Naandi Foundation. Nanhi Kali is a nationwide project to support the education of disadvantaged girls. Ensuring that girls are in school and that they get 10 years of uninterrupted formal quality education is the aim of the project.

The Foundation for Mother and Child Health, India:works to improve the lives of mothers and children in local communities by providing long term programmes focused on health, nutrition, education, and sustainable skills training programmes.

Azim Premji Foundation: HSBC supports Computer Aided Learning Programme (CALP) to create an environment where learning is fun and the opportunities to learn are equal. This project focuses on rural Government elementary schools covering classes 1 to 8 to attract children to school, retain them in school and to enhance the quality of learning in school.

Welfare Society for the Blind: conducts vocational training programmes for adult persons with visual disability to equip them with the skills and competence to gain a degree of economic selfsufficiency.

Goonj: A unique resource mobilization initiative channelising clothes and other basic amenities to millions in the far flung areas by turning one's wastage into resource for another. Initiated in 1998 with just 67 clothes, they now send out over 10,000 kgs of material every month in 18 states.

Butterflies, Delhi:has been working with street and working children in Delhi since 1989. The project has started a mobile van service with computer training and banking/savings facilities for street children at 12 key street children contact points in Delhi.

Deepalaya, Delhi:aims to bring about sustainable development in poor communities through educational interventions at three levels i.e., the child, the family & the community. The project being supported is educating 750 children from Patpar Ganj slum in East Delhi and mainstream them into the formal education system

Navjyoti Delhi Police Foundation, Delhi:was founded by Dr Kiran Bedi and 17 other likeminded officials of Delhi Police. The project being supported is to run seven libraries for 4000 underprivileged children in the age group of 4 to 16 years.

Yusuf Meherally Centre, Delhi:established in 1961 and working for the welfare of needy and landless rural people for the last 38 years. A project to provide400 begging/working children in Delhi education, life skills and counselling is being supported.

Children Toy Foundation, Mumbai:The organisation has been instrumental in setting up 194 Toy Libraries all over India, 86 in Mumbai alone. The project has set up a 'Khelvigyan Center' in Baroda with toys that engage children who otherwise have little access to healthy, exciting and educational forms of recreation.

Salaam Baalak Trust, Mumbai:established in1988 with a portion of the proceeds from the film "Salaam Bombay!" by Mira Nair. It aims to give street children choices and a chance to experience the joys of childhood; HSBC is supporting a night shelter at Umerkhadi that acts as a safe haven for 30 homeless girls.

Parivartan Social Welfare Society, Kolkata:currently runs 80 community based education centres in three municipalities serving about 2000 children every year. The being supported aims to provide quality education to 400 outofschool children

Loreto Day School. Sealdah:'Off to school programme' a unique project for homeless children that bring the privileged and the less fortunate together in one classroom. It is a school in the day and a shelter for girls by night.

Jeevodaya Society, Itarsi:The construction of the shelter for homeless girls from Itarsi railway station, which serves as a safe and protected environment for these girls.

Light of Life Trust, Karjat (Maharashtra) HSBC supports ANANDO, a project for the education and integration of outofschool children in Karjat, Madgaon and Alibag. ANANDO adopts the E3 Approach Educate; Empower Equip / Employ.

Shoshit Seva Sangh, Patna:A new residential school known as Shoshit Samadhan Kendra is being supported to provide education and vocational training to children of the 'Mushar' (rat catcher) community former untouchables living in the outskirts of Bihar villages.

CSR Course at HR College of Commerce and Economics:HSBC has partnered with the HR College of Commerce and Economics to deliver CSR learning modules through a series of interactive sessions with the objective of sensitising students in their formative years on the benefits of CSR. This initiative will enable students in their professional and personal lives to comprehend the importance of CSR and act in an ethical and sustainable manner

PRODUCTS OF HSBCSaving for Education: Plans and ProductsSmart planning and saving for education expensesSaving to fund your children or grandchildren's education can be challenging, yet very rewarding. Designing an education savings plan to accumulate the right amount of assets at the right time is critical. Following the plan in a disciplined way, while adjusting it periodically to account for the rising cost of a college education, is also important.529 College Savings Plans1With a 529 plan, all contributions are made post-tax for federal income tax purposes. Some states also offer tax-deductible contributions for residents. The benefit to you is that your contribution will grow on a tax-deferred basis, and your distribution to pay for college can also be made tax-free. Investors should be mindful that 529 College Savings Plans are municipal securities and may be subject to market volatility and fluctuation.Another great benefit is that you, as the account owner, will have control over the funds. Many plans will even allow you to reclaim the funds for yourself if your needs change.Evaluating education savings vehiclesParents and grandparents can choose among a handful of investment programs, some of which offer tax advantages while saving for education expenses. In addition to 529 College Savings Plans, other plans are available and have been detailed in the comparison chart below. Speak with a financial professional2 from HSBC Securities (USA) Inc. by calling 866.586.4722 or schedule a consultation online for complete plan details

529 College Savings Plans1Coverdell Education Savings Accounts (ESAs)Custodial Accounts (UGMA/UTMA)

What's the core plan structure?Tax-advantaged investment account selected by parent with state-provided choices availableTax-advantaged investment account in which parents can choose to invest in mutual funds3, stocks5, bonds4and moreIrrevocable gift to a minor, managed by an adult custodian

What can the funds be used for?Qualifying college expensesQualifying elementary, secondary, and college expensesAny purpose benefitting the minor

Who may open an account?Generally any adult, though details may vary by stateAnyone whose adjusted gross income is less than $110,000 for single filers and $220,000 for married/joint filersAny adult

May friends and family contribute to the plan?Yes, in most casesYesNo

Maximum contributionsAnnually: $13,000-(individual) / $26,000 (joint) -or- lump sum: $65,000 (individual) / $130,000 (joint) in the first of a five year periodAnnually: $2,000$13,000 a year w/o mandatory filing Form 709 & possible payment of gift taxes

Forms of acceptable fundingCashCashCash, securities, real estate, art, patents, royalties, and more

Tax implications ContributionsFederal: not deductibleState: varies by stateFederal: not deductibleState: not deductibleFederal: not deductibleState: not deductible

Tax implications EarningsTax-free when used for qualifying expensesTax-free when used for qualifying expensesTaxed

Expiration age and transfer flexibilityFunds may be disbursed for qualifying expenses for a beneficiary of any age. Transfers to other family members are allowedFunds must be transferred to another eligible family member or disbursed for qualifying expenses before the beneficiary turns 30, unless the beneficiary is an individual with special needs, in order to avoid penaltiesCustodial supervision ends when minor reaches age of majority which varies by state. No transfers a gift is irrevocable

What are structured products?Structured products1 are investment vehicles based on or derived from a single security, a basket of securities, an index, a commodity, a debt issuance and/or a foreign currency. Structured products have a fixed maturity date and are designed to offer specific risk-return tradeoffs, with pre-set formulas for both the potential risk and potential return. However, these calculations are often complex.Some structured products offer protection of the principalwhen held to maturity, subject to issuer credit risk, thus offering a lower risk than investing in the underlying asset directly. Others do not guarantee principal, but may provide a partial buffer against loss or offer the potential for enhanced returns.Principal Protected Market-Linked Certificates of Deposit (CD) from HSBC2A Market-Linked CD is a bank deposit product with returns tied to an underlying asset type.In addition to providing an efficient means of portfolio diversification, the variety of market-linked CDs issued by HSBC Bank USA, N.A. and made available through HSBC Securities (USA) Inc. offer:A degree of upside exposure to the potential price appreciation in a variety of underlying assets3A range of terms to match your investing timeline100% principal protection if held to maturity, subject to the issuer's credit risk2The security of FDIC insurance4Access to various U.S. and international markets5

Fixed income productsWhat are fixed income investments?Fixed income1 investments generally provide an established return on a fixed schedule. One of the most popular types of fixed income products are bonds, through which you lend money to a government, municipality, corporation, federal agency or other entity known as an issuer. In return for that money, the issuer provides you with a bond in which it promises to pay a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it matures, or comes due. Many of these investments can offer tax-free returns on the municipal, state and federal levels. Individual bonds can be useful in a strategy that seeks to preserve capital and generate a predicable return when they are held to maturity, subject to issuer credit risk2.An array of fixed income productsHSBC Securities (USA) Inc. offers access to a wide variety of fixed income products including: Municipal bonds: Debts issued by states, municipalities or counties that are free from federal taxes and usually free of state and local taxes3. Municipal Securities may be subject to the federal Alternative Minimum Tax. Treasury notes and bonds: U.S. Government debt that carries a fixed interest rate, usually with a maturity of 1-10 years. Interest income is exempt from state and local income taxes, but subject to federal income taxes.4 Government-sponsored enterprises (GSEs) / Agency: Bonds issued by financing entities created by Congress to fund loans to certain groups of borrowers such as homeowners, farmers and students. i.e. Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) are privately owned corporations, while the Federal Home Loan Banks and the Federal Farm Credit Banks are systems comprising regional banks. All GSE debt is not guaranteed by the federal government, whereas government agencies such as Government National Mortgage Association (Ginnie Mae) are divisions of the government whose securities are backed by the full faith and credit of the United States. Sovereign bonds: Issued by a national government and denominated in a foreign currency5 Domestic corporate bonds Unit Investment Trust or Bond Funds6 Brokered CDs7

What are mutual funds?Mutual funds1 are a type of pooled investment vehicle. Shareholders of a mutual fund invest their money by purchasing shares of the fund. The money that they pay for the shares is pooled together and invested in a portfolio of securities, such as stocks, bonds, or money market instruments. Mutual funds are professionally managed and operated by money managers, who maintain the portfolio in accordance with the fund's investments objectives as stated in the prospectus.Popular investment disciplines which can involve mutual funds include: Asset allocation2: a disciplined approach to long-term investing, designed to seek consistent exposure to markets. This approach does not guarantee a profit or protect against a loss. It also cannot eliminate the risk of fluctuating prices and uncertain returns. However, it may be used in an effort to manage risk and enhance returns. Dollar cost averaging3: a strategy in which securities, typically mutual funds, are purchased in fixed dollar amounts at regular intervals, regardless of what direction the market is moving. While this method doesn't guarantee against losses, over time, this can help to reduce the average cost of acquired shares. Target date ("life cycle") investing4: investors choose a fund with a specified target date near a personal need or goal (such as retirement) for which they will need to access their invested funds. Though target date investing does not protect against loss of principal, the fund's risk exposure is gradually reduced as a target date draws nearer to prepare for the approaching liquidity needs.Mutual funds built on HSBC's global capabilitiesOur World Selection Funds5 offer asset allocation solutionsdesigned to help minimize the roller-coaster ride that volatile market conditions can generate. The five different fund strategies are aligned to a the full spectrum of risk profiles: Income Strategy Fund, Conservative Strategy Fund, Moderate Strategy Fund, Balanced Strategy Fund and Aggressive Strategy Fund. Explore our other exclusive asset allocation solutions.In addition, the suite of HSBC Funds6 includes domestic money market funds and domestic and international equity and debt funds7. The HSBC Emerging Markets Debt Fund, HSBC Emerging Markets Local Debt Fund, HSBC Frontier Markets Fund, HSBC Total Return Fund and the HSBC RMB Fixed Income Fund all provide access to some of the world's fastest growing markets through the lens of HSBC's deep global knowledge and experience.Mutual funds from the world's leading managersA financial professional8 from HSBC Securities can not only provide access to the competitive funds managed by HSBC, but also help you choose from a broad selection of third-party mutual funds. Each of these funds is thoroughly screened and regularly reviewed by HSBC Wealth Portfolio Management Americas team 9 a global team of research analysts dedicated to identifying third party money managers with competitive advantages in their asset class, to enhance our clients' portfolios.Take advantage of our mutual fund experienceMutual funds offer a convenient avenue for entering financial markets and can also become integral parts of a broader investment strategy. To fully understand your personal investment objectives and help determine which mutual funds may be suited for your needs, an HSBC Securities financial professional8 will take the time to conduct a thorough financial review. To schedule your review, or to receive information on HSBC mutual funds, please call 866.586.4722 or schedule a consultation online.

OPERATIONSHSBC has its world headquarters at 8 Canada Square in Canary Wharf, London. HSBC has a significant presence in each of the world's major financial markets, with the Americas, Asia Pacific and Europe each representing around one third of its business. HSBC is the largest bank in Hong Kong and prints most of Hong Kong's local currency in its own name. As of 2 April 2008, according to Forbes magazine, HSBC was the fourth-largest bank in the world by assets (with $2,348.98billion), the second largest in terms of revenues (with $146.50billion) and the largest in terms of market value (with $180.81billion). It was also the most profitable bank in the world with $19.13billion in net income in 2007 (compared to Citigroup's $3.62billion and Bank of America's $14.98billion in the same period). In June 2006, The Economist stated that since the end of 2005 HSBC has been rated the largest banking group in the world by Tier 1 capital. In June 2014 The Banker ranked HSBC first in Western Europe and 5th in the world for Tier 1 capital. In February 2008, HSBC was named the world's most valuable banking brand by The Banker magazine. HSBC is known for a conservative and risk-averse approach to business a company tradition going back to the 19th century. This reputation has been brought into question in the 21st century.In its technical management, however, HSBC has recently suffered a series of headline-making incidents in which some customer data were allegedly leaked or simply went missing. Although the consequences turned out to be small, the embarrassing effect on the group's image did not go unnoticed. HSBC is currently audited by one of the Big Four auditors, KPMG. The HSBC and KPMG headquarters are adjacent to one another, with KPMG occupying 15 Canada Square. HSBC Main Building, Hong Kong is also adjacent to KPMG office located in Prince's Building. A decision on 2 August 2013 made public that PricewaterhouseCoopers will take on the HSBC audit in 2015. In the six months to 30 June 2014, the bank reported a 7.33 billion ($12.34 billion) profit before tax, down from $14.07 billion for the comparable period in 2013.

Principal subsidiariesAsia Pacific HSBC Bank Armenia HSBC Bank Australia Limited The Hongkong and Shanghai Banking Corporation Ltd Hang Seng Bank Ltd HSBC Bank (China) Company Ltd HSBC Bank Malaysia Berhad HSBC Bank Philippines Ltd HSBC Bank India HSBC Bank Indonesia HSBC Bank Bangladesh HSBC Sri Lanka HSBC Bank Pakistan HSBC Bank VietnamEurope HSBC France HSBC Trinkaus und Burkhardt AG HSBC Bank International the offshore banking arm of the HSBC Group, focusing on providing offshore solutions and cross border services to expatriates and migrants. It provides a full range of multi-currency personal banking services to a range of customer segments, including a full internet banking and telephone banking service. Sometimes referred to as "HSBC Offshore", the business also offers independent financial planning, and has representative offices all over the world, often working alongside local HSBC operations in those regions. HSBC Bank International originated from the business started by Midland Bank and is based in the Channel Islands with further operations on the Isle of Man. Its operations in the Channel Islands are centred around its headquarters on the seafront in St Helier, Jersey. HSBC Bank Malta plc HSBC Bank A.. HSBC Private Bank (UK) Ltd HSBC Bank plc

AmericasThe headquarters of HSBC Brazil in Curitiba HSBC Bank USA Inc HSBC Finance Corporation HSBC Bank CanadaMiddle East and North Africa HSBC Bank Middle East Ltd HSBC Bank Egypt SAE The Saudi British BankPrincipal business groups and divisionsHSBC organizes its customer-facing activities within four business groups: Commercial Banking; Global Banking and Markets (investment banking); Personal Financial Services (retail banking and consumer finance); and Global Private Banking.

Commercial BankingHSBC provides financial services to small, medium-sized and middle-market enterprises. The group has more than 3million of such customers, including sole proprietors, partnerships, clubs and associations, incorporated businesses and publicly quoted companies.Global Banking & MarketsGlobal Banking and Markets is the investment banking arm of HSBC. It provides investment banking and financing solutions for corporate and institutional clients, including corporate banking, investment banking, capital markets, trade services, payments and cash management, and leveraged acquisition finance. It provides services in equities, credit and rates, foreign exchange, money markets and securities services, in addition to asset management services.Global Banking and Markets has offices in more than 60 countries and territories worldwide, and describes it as "emerging markets-led and financing-focused".Global Banking and Markets is currently being led by former fixed-income trader Samir Assaf, who was promoted from global head of markets on 10 December 2010.

Global Private BankingMain article: HSBC Private Bank

The main London office of HSBC Private Bank in St James'sHSBC Private Bank is the marketing name for the private banking business conducted by the principal private banking subsidiaries of the HSBC Group worldwide. HSBC Private Bank, together with the private banking activities of HSBC Trinkaus, known collectively as Group Private Banking, provides services to high net worth individuals and their families through 93 locations in some 42 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. As of December 2007, profits before tax were US$1,511million and combined client assets under management were US$494billion.In September 2008, HSBC announced that it would combine its two Swiss private banks under one brand name in 2009, with HSBC Guyerzeller and HSBC Private Bank to be merged into one legal entity, under the newly appointed CEO of HSBC Private Bank, Alexandre Zeller.

Retail Banking and Wealth ManagementHSBC provides more than 54 million customers worldwide with a full range of personal financial services, including current and savings accounts, mortgage loans, car financing, insurance, credit cards, loans, pensions and investments.Retail Banking and Wealth Management (also known as RBWM) was previously referred to as Personal Financial Services (PFS). This rename was announced during HSBC's 2011 Investor Day. Group Service CentresAs a cost-saving measure HSBC is offshoring processing work to lower cost economies in order to reduce the cost of providing services in developed countries. These locations take on work such as data processing and customer service, but also internal software engineering at Pune (India), Bangalore (India), Hyderabad (India), Vishakhapatnam (India), Calcutta (India), Guangzhou (China), Curitiba (Brazil) and Kuala Lumpur (Malaysia).

The HSBC Global Technology Centre in Pune, IndiaChief Operating Officer Alan Jebson said in March 2005 that he would be very surprised if fewer than 25,000 people were working in the centres over the next three years: "I don't have a precise target but I would be surprised if we had less than 15 (global service centres) in three years' time." He went on to say that each centre cost the bank from $20m to $30m to set up, but that for every job moved the bank saves about $20,000 (10,400). Trades unions, particularly in the UK and US, blame these centres for job losses in developed countries, and also for the effective imposition of wage caps on their members. Currently, HSBC operates centres out of nine countries, including; United Kingdom (Leeds, Hamilton, Edinburgh, Swansea, Manchester, Coventry & Leicester), Brazil (Curitiba), the Czech Republic (Ostrava), India (Calcutta, Hyderabad, Bangalore, Visakhapatnam, Bombay, Gurgaon and Pune), China (Shanghai, Guangzhou and Shenzhen), Malaysia (Kuala Lumpur), Poland (Krakow), Sri Lanka (Rajagiriya) and the Philippines (Manila). The Malta trial for a UK high value call centre has resulted in a growing operation that country.

GLOBAL PRODUCT LINESHSBC DirectHSBC Direct is a telephone/online direct banking operation which attracts customers through mortgages, accounts and savings. It was first launched in USA in November 2005 and is based on HSBC's 'First Direct' subsidiary in Britain which was launched in the 1980s. The service is now also available in Canada, Taiwan, South Korea, France and India. Poland is launching business direct in September 2009. In US, HSBC Direct is now part of HSBC Advance.HSBCnetHSBCnet is a global service that caters to local business needs by offering specialised functionality for different regions worldwide.The system provides access to transaction banking functionality ranging from payments and cash management to trade services features as well as to research and analytical content from HSBC. It also includes foreign exchange and money markets trading functionality.The system is used widely by HSBC's high-end corporate and institutional clients served variously by the bank's global banking and markets, commercial banking and global transaction banking divisions.HSBCnet is also the brand under which HSBC markets its global e-commerce proposition to its corporate and institutional clients.HSBC AdvanceHSBC Advance is the group's product aimed at working professionals. The exact benefits and qualifications vary depending on country, but typically require a transfer of Salary of USD 1,500 or more every month or Maintain USD 25,000 of deposits in a Savings/Current Account or investments. Advantages may vary depending on country, such as day-to-day banking services including but not limited to a Platinum Credit Card, Advance ATM Card, Current Account and Savings Account. Protection plans and Financial Planning Services. A HSBC Advance customer enables the customer to open accounts in another country and transfer their credit history.HSBC PremierHSBC Premier is the group's premium financial services product, comparable to the Centurion service of American Express. It has its own Elite Card entitled HSBC Premier World Card. The exact benefits and qualification criteria vary depending on country. Customers have a dedicated Premier Relationship Manager, global 24-hour access to call centres, free banking services and preferential rates.

What we mean by Corporate Sustainability?At HSBC, sustainability means managing our business responsibly and sensitively, and ensuring we include social, economic and environmental factors in the decisions we make to ensure long-term business success. We believe it is our duty to our customers, investors and employees to foster an ethical, responsible and sustainable corporate philosophy. Our goal is to be one of the worlds leading brands in corporate sustainability.Our vision is to be the world's leading financial services company. We want HSBC to be the first choice for our customers and for our employees the best place to bank, and the best place to work. We also believe that we can play a role in helping to address the formidable challenges facing society today and by helping to make the world a better place to live, we will also make our own business more sustainable. At HSBC, our response is inevitably shaped by the views of our shareholders, our customers, our colleagues and the wider community; and sustainability is clearly a theme of growing importance to all of these constituencies. If our owners, customers and staff consider these issues to be important, this clearly means that our social responsibilities and sustainability must be at the very core of our business; not just an addon to it. This is why, our primary objective in our strategic plan states that we aspire to be one of the worlds leading brands for customer experience and corporate responsibility.We believe a company that behaves ethically, responsibly and believes in sustainability will ultimately be more successful than its competitors because it addresses issues on which its longterm success depends, and thereby gains the confidence of investors, customers and employees. The companies that will be our sector's leaders in five, 10 and 50 years time already know that a commitment to environmental and social sustainability is not a secondary issue; it is a defining strategy that will help build financially successful global companies of the future.Our goal is not, and never has been, profit at any cost because we know that tomorrow's success depends on the trust we build today. We look to address the expectations of our customers, shareholders, employees and other stakeholders. Our frequently asked question covers a range of issues including the size of HSBCs profits, customer indebtedness and executive pay. Being one of the worlds biggest banks means the decisions we make can have a big impact. We aim to lend and invest responsibly, avoiding projects where the potential for social and environmental damage outweighs the economic benefits. Companies like ours must share responsibility for the environment with governments and citizens for minimising the damaging effects of human activity pollution of land, water and air and the depletion of resources. The world is a rich and diverse place. The better our people reflect this diversity, the better we can anticipate and meet our customers needs. Involving our employees in the community brings many benefits. Our employees gain understanding, confidence and selfesteem. Being recognised in the community also helps HSBC to attract great people. Education is crucial to the development and prosperity of every country. By investing in education, we seek to build the confidence and abilities of young people on whom, as customers or employees, our business and future success will depend.

MONEY LAUNDERINGMoney laundering has been an issue in Argentina, India, the United Kingdom and the United States.Following search warrants and raids beginning in January 2013, in mid-March 2013 Argentina's main taxing authority accused HSBC of using fake receipts and dummy accounts to facilitate money laundering and tax evasion. On 19 July 2012, India assured to get to the bottom of alleged violation of safety compliance, in which Indian employees are presumed to be involved. On 9 November 2012, Indian activist and politician Arvind Kejriwal claimed he had details of 700 Indian bank accounts hiding black money with a total value of 60 billion (US$980million) with HSBC in Geneva. In June 2013, a media outlet in India did an undercover expose where HSBC officers were caught on camera agreeing to launder "black money." HSBC placed these employees on leave pending their own internal investigation. In early February 2013, appearing before UK's Parliamentary Banking Standards Commission, CEO Stuart Gulliver acknowledged that the structure of the bank had been "not fit for purpose." He also stated, "Matters that should have been shared and escalated were not shared and escalated." HSBC has also been accused of laundering money for terrorist groups. In both 2003 and 2010, U.S. regulators ordered HSBC to strengthen its anti-money laundering practices. In October 2010, the United States OCC issued a Cease and Desist Order requiring HSBC to strengthen multiple aspects of its Anti-Money Laundering (AML) program. The identified problems included a once massive backlog of over 17,000 alerts identifying suspicious activity, failure to file timely suspicious activity reports with U.S. law enforcement, failure to conduct any due diligence to assess risks to HSBC affiliates before opening correspondent accounts for them, a three-year failure by HBUS from mid-2006 to mid-2009 to conduct any AML of $15 billion in bulk cash transactions from those same HSBC affiliates, failure to monitor $60 trillion in annual wire transfers by customers in countries rated lower risk by HBUS, and inadequate and unqualified AML staffing, resources, and leadership. It was noted that HSBC fully cooperated with the Senate investigation. In November 2012 it was reported that HSBC had set up offshore accounts in Jersey for suspected drug-dealers and other criminals, and that HM Revenue and Customs had launched an investigation following a whistleblower leaking details of 700 million allegedly held in HSBC accounts in the Crown dependency . In December 2012, Assistant U.S. Attorney General Lanny Breuer suggested that the U.S. government might resist criminal prosecution of HSBC which could lead to the loss of the bank's U.S. charter. He stated, "Our goal here is not to bring HSBC down, it's not to cause a systemic effect on the economy, it's not for people to lose thousands of jobs." In December 2012, HSBC was penalized $1.9 billion (US), the largest fine under the Bank Secrecy Act, for violating four U.S. laws designed to protect the U.S. financial system. HSBC had allegedly laundered at least $881 million in drugs proceeds through the U.S. financial system for international cartels, as well as processing an additional $660 million for banks in US sanctioned countries. According to the report, "The U.S. bank subsidiary [also] failed to monitor more than $670 billion in wire transfers and more than $9.4 billion in purchases of physical dollars from its Mexico unit." As part of the agreement deferring its prosecution, HSBC acknowledged that for years it had ignored warning signs that drug cartels in Mexico were using its branches to launder millions of dollars, and also acknowledged that HSBC's international staff had stripped identifying information on transactions made through the United States from countries facing economic sanctions such as Iran and Sudan. A February 2013 article in Rolling Stone magazine, which was critical of what they regarded as the timid response by the U.S. Justice Department, stated "Yes, they issued a fine $1.9 billion, or about five weeks' profit but they didn't extract so much as one dollar or one day in jail from any individual, despite a decade of stupefying abuses" and further stated, "In this case, the bank literally got away with murder well, aiding and abetting it, anyway." A December 2012 CNNMoney article compared the 1.9 billion dollar fine to HSBC's profit "last year" (2011) of 16.8 billion.

OTHER CONTROVERSIESIn the report titled "In the Future There Will Be No Forests Left" produced by Global Witness, the bank is also being accused of supporting the seven largest Malaysian timber conglomerates which are responsible for rapid deforestation in the Malaysian state of Sarawak without any FSC certifications. However, the bank declined to divulge its clients on this issue, citing the confidentiality of its clients; but the bank maintains that the accusations that its clients violate forestland and forest-products policy is not accurate. HSBC also held billions of dollars of assets for the Libyan Investment Authority, which was controlled by Colonel Muammar Gaddafi; after Gaddafi's overthrow and assassination, the bank refused to reveal information about the funds, citing customer confidentiality. In 2014 HSBC refused to allow customers to withdraw large cash amounts without a third-party letter confirming what the money would be used for. Douglas Carswell, the Conservative MP for Clacton, was alarmed by the HSBC policy: "All these regulations which have been imposed on banks allow enormous interpretation. It basically infantilises the customer. In a sense your money becomes pocket money and the bank becomes your parent."In 2014 HSBC closed North London Central Mosque's account and some muslim clients and group's accounts. Several sources report that HSBC closed them because they donated their money to Palestine during the massacring.

LOGO

The group announced in November 1999 that the HSBC brand and the hexagon symbol would be adopted as the unified brand in all the markets where HSBC operates, with the aim of enhancing recognition of the group and its values by customers, shareholders and staff throughout the world.The hexagon symbol was originally adopted by the Hongkong and Shanghai Banking Corporation as its logo in 1983. It was developed from the bank's house flag, a white rectangle divided diagonally to produce a red hourglass shape. Like many other Hong Kong company flags that originated in the 19th century, and because of its founder's nationality, the design was based on the cross of Saint Andrew. The logo was designed by Austrian graphic artist Henry Steiner.

SPONSORSHIPS

The 2004 Jaguar Racing Formula One car, being driven by Mark WebberHaving sponsored the Jaguar Racing Formula One team since the days of Stewart Grand Prix, HSBC ended its relationship with the sport when Red Bull purchased Jaguar Racing from Ford. HSBC has now switched its focus to golf, taking title sponsorship of events such as the HSBC World Match Play Championship, HSBC Women's World Match Play Championship (now defunct), HSBC Champions and HSBC Women's Champions.In football HSBC sponsors French club AS Monaco and Mexican club C.F. Pachuca, and in rugby league, HSBC sponsors Telford Raiders in the Rugby League Conference. In Australia, HSBC sponsors the New South Wales Waratahs rugby team in Super Rugby rugby union competition, as well as the Hawthorn Football Club in the Australian Football League.HSBC's other sponsorships are mainly in the area of education, health and the environment. In November 2006, HSBC announced a $5million partnership with SOS Children as part of Future First. HSBC sponsors the Great Canadian Geography Challenge, which has had around 2million participants in the past 12 years. Since 2001, HSBC has sponsored the Celebration of Light, an annual musical fireworks competition in Vancouver, British Columbia, Canada. In 2007 HSBC announced it would be a sponsor of the National Hockey League's Vancouver Canucks and Calgary Flames. HSBC has also sponsored a professional gaming team that was disbanded late 2007. HSBC is also committed to local sponsorships, the Mandarins Cricket Club being one example.HSBC sponsored the 2009 British and Irish Lions tour to South Africa. HSBC is the official banking partner of the Wimbledon Tennis Championships, providing banking facilities on site and renaming the Road to Wimbledon junior event, as the HSBC Road to Wimbledon National 14 and Under Challenge. HSBC was named the 'Official Banking Partner' of the Open Championship, in a five-year deal announced in 2010. In October 2010, the International Rugby Board announced that they had concluded a 5-year deal with HSBC which granted them status as the first ever title sponsor of the IRB Sevens World Series. Through the accord, HSBC is paying more than $100 million for the title naming rights to all the tournaments in the IRB Series, beginning with the Dubai Sevens on 3 December 2010, and ending in the spring of 2015. HSBC opted to sub-license the naming rights to all but one of the individual tournaments, while retaining its name sponsorship of the overall series as well as co-sponsorship (with Cathay Pacific) of the world's most famous 7-a-side rugby tournament, the Hong Kong Sevens.

COMPANY OVERVIEWHSBC Bank USA, N.A. provides commercial banking products and services to individuals, corporations, institutions, and government agencies. It offers personal financial services, including installment and revolving term loans, deposits, branch services, mutual funds, investments, and insurance, as well as residential mortgage lending services through direct retail and wholesale origination channels. The company also provides private banking services for high net worth individuals and families, including deposits, tailored credit and banking, investment management, trust and estate administration, custody, and retirement services, as well as wealth and tax advisory, philanthropy, family office...Detailed Description:-1800 Tysons BoulevardSuite 50Mclean, VA22101United StatesFounded in 1850Phone: 716-841-7212Fax: 716-841-2034www.us.hsbc.com

KEY EXECUTIVES for HSBC Bank USA, N.A.

Mr. Roger K. McGregor Chief Financial Officer and Senior Executive Vice President Age: 65

Mr. Paul J. Lawrence Head of Corporate Investments Banking & Markets (CIBM) for North America Age: 51

Mr. Brendan Paul McDonagh Chief Executive Officer of HSBC North America Age: 55

Mr. William Wong Chief Executive Officer of HSBC Securities

Mr. Andy Ireland Executive Vice President and Regional President of Upstate Retail Banking

HSBC Bank USA, N.A. KEY DEVELOPMENTS

HSBC Bank USA Faces Suit over Alleged Role in Sale of Death BondsAug 26, 2014HSBC Bank USA for $250 million over the lender's alleged role in SLS Capital's sale of so-called 'death bonds'. The complaint filed in the U.S. District Court in Manhattan alleged that the lender ignored signs of suspicious activity carried out by late British entrepreneur David Elias through Keydata Investment Services, an investment vehicle he controlled. HSBC served as a custodian of life insurance policies that backed bonds sold by SLS Capital, according to the suit. The bonds were falsely marketed as safe.HSBC North America Holdings Inc., HSBC USA Inc. and HSBC Bank USA, N.A. Announces Executive Changes, Effective June 30, 2014Jun 16, 2014Patrick (Pat) Burke (52) has been appointed Executive Director of HSBC North America Holdings Inc., HSBC USA Inc. and HSBC Bank USA, N.A. with effect from 30 June 2014. Burke succeeds Irene Dorner (59), who will retire after a distinguished 32-year career at HSBC. Burke was appointed Chief Executive of HSBC Finance Corporation in 2010, assuming responsibility for winding down the legacy Household consumer finance business. Rhydian Cox (53) has been appointed xecutive Director of HSBC North America Holdings Inc., HSBC USA Inc., HSBC Bank USA, N.A with effect from 30 June 2014. Cox will report to the Chief Executive of HSBC US and to Marc Moses, Executive Director and Group Chief Risk Officer. Cox will chair a new US Remediation Committee which will drive the regulatory remediation of high-risk items, including significant control items. Cox was appointed Chief Risk Officer, Asia-Pacific in 2008. He joined the Group in 1984 and was appointed a Group General Manager in 2013.HSBC Bank USA NA Appoints Thomas Hou as Managing Director of Debt Finance Origination for U.S. Commercial BankMay 9, 2014HSBC Bank USA NA appointed Thomas Hou managing director of debt finance origination for the U.S. Commercial Bank. Hou will be responsible for helping the company's commercial banking clients access bank financing. He will work with Andy Smith, head of debt finance origination for the U.S. Commercial Bank. Both report to Martin Brown, executive vice president and head of large corporate banking. Hou joins from Barclays Plc, where he served as a managing director with the high-grade loan syndicate.

HSBC GROUP MEMBERS

Personal and Commercial Banking

HSBC Bank Brazil S.A. - Banco MultipleHang Seng Bank LimitedHSBC Bank CanadaThe Hongkong and Shanghai Banking Corporation LimitedHSBC Bank Argentina S.A.HSBC Bank Australia LimitedHSBC Bank Malaysia BerhadHSBC Bank Middle East LimitedHSBC Finance CorporationHSBC Bank USA N.A.HSBC Bank plcHSBC Mxico, S.A., Institution de Banca Multiple, Group Financiers HSBCFirst direct (division of HSBC Bank plc)HSBC FranceHSBC Bank Malta plcHSBC Bank Egypt S.A.E.The Saudi British Bank (associate HSBC Group)

Global Banking and Markets

Global Banking and Markets

ASSET MANAGEMENT

HSBC Global Asset ManagementHSBC Trinkaus & Burkhardt AG

Private Banking and Trustee ServicesHSBC Bank Middle EastHSBC Private BankHSBC Trinkaus & Burkhardt AGHSBC Trust Company (UK) Limited

SECURITIESHSBC Trinkaus & Burkhardt AGHSBC Broking Services (Asia) LimitedHSBC Casa de Bolsa, S.A. de C.V., Group Financier HSBC

FINANCEHSBC Asset Finance (UK) LimitedHSBC Invoice Finance (UK) LimitedHSBC Vehicle Finance (UK) LimitedHSBC International Trade Finance LimitedWayfoong Credit LimitedWayfoong Finance LimitedHSBC Fianzas, S.A., Group Financier HSBC (financing bonds)

Insurance, Retirement Benefits, Actuarial and Personal Financial ServicesHang Seng Insurance Company LimitedHang Seng Life LimitedHSBC Insurance Holdings LimitedHSBC Bank plcHSBC Life (UK) LimitedHSBC Seguros, S.A. de C.V., Group Financier HSBC (insurance)HSBC Pensions, S.A. (pensions)HSBC Insurance (Asia-Pacific) Holdings Limited

CONCLUSIONAs long as the wider economic situation remains doubtful, it is advisable for HSBC to adopt a wait-and-see approach - and a careful look at their businesses, stress testing them for both economic downturn and full-blown recession. And it would be useful to factor in the wider commercial and operational impacts through combined risk, valuation, economics, operations and HR teams. Certainly, for financial services firms like HSBC, crisis management still necessary in the form of asset and portfolio revaluation on a mark-to model basis for both management and constitutional accounting purposes - and this may need some independent validation.

Within the last decade the best consumer bank HSBC garnered awards along with soaring rankings. This was just one of those awards won by the HSBC in its excellent performance. Such achievements, rankings, and awards can be directly resulting from HSBC's business strategies. As the last decade's success is not ever lasting due to increased competition in the industry facilitated by globalization, trade liberalization rather is become more difficult for the corporation to maintain its leading position through offering the excellence in the service. The company needs to add diverse values to its strategy to establish its position in the target segment.

HSBC may check policies, procedures and availability of skilled people to respond quickly and effectively to serious market volatility or disruption to stem losses (or even make profits). It may also review the adequacy of: Limit framework; reporting framework; Stress-testing procedures.

HSBC needs to play their pricing strategies very carefully; as it has generated many hundreds of millions of pounds per annum in revenue from these charges. Review operational capability to handle the situation, with particular focus on: effectiveness of the process, infrastructure along with functional capacity (front, middle, back office) and straight through process/workflow evaluation.

BIBLIOGRAPHY

BOOKS

KOTLER PHILIP : Marketing in New Millenium, Millenium Edition Prentince Hall Of India, New Delhi C.R. Kothari : Research Methology; Wishva Publication, New Delhi. M.J Methew : Risk & Insurance Management.

MAZAGINES

Business World Invest One Business Today Invest Time By TATA-AIG Fund Fact Sheets Of Reliance Mutul Fund Offer Documents Of Different Schemes

WEBSITES

http://en.wikipedia.org www.hsbc.com

4