HSBC slow to fix compliance lapses: report

New York

HSBC Holdings Plc is falling short on its agreement with the US to clean up operations after clients laundered drug money and did business with terrorist regimes, according to two people familiar with a report from the bank's monitor.

The critical, 1,000-page report, which summarises HSBC's first year under a court-appointed monitor, raises doubts about how effective the government's use of deferred- and non-prosecution agreements is in reining in wrongdoing and changing culture at the world's largest banks.