hsbc

The final cost to banks of the PPI mis-selling scandal could be as much as £25bn, almost double the figure the banks have estimated so far.

The LIBOR-rigging scandal that engulfed the banks in 2012 further dented their badly tarnished reputation and dealt another blow to public confidence, leaving investors uncertain how to play the sector.

Now we have published our final issue of Investment Week for 2012, we reflect on what has been a rollercoaster year characterised by big changes in the fund management industry.

HSBC will spend $700m over the next five years in an attempt to tackle money laundering after it was lambasted by US authorities and fined $1.9bn yesterday.

HSBC and Standard Chartered have agreed record settlements over money laundering allegations as the former agrees to pay $1.9bn to US regulators.

The FSA is set to probe the asset management industry in a review of the risks of bribery, corruption, sanctions and money laundering, according to law firm Dechert LLP.

The state of banks' financial health remains "obscure" and means they should be avoided by investors for now, Liontrust's Jan Luthman has said.

The UK's accounting rules are distorting bank profits and leading to confusion over executive pay, some of the country's largest investors have have warned.

David Cameron has issued one of his strongest defences of the banking sector yet, telling the Lord Major's banquet those who "trash the banks would end up trashing Britain".

HSBC is investigating allegations criminals used offshore accounts at its Jersey business for money laundering and tax evasion, the BBC reports.