With the move, the Mississippi bank would no longer be regulated by the Federal Reserve. The decision comes after the bank struggled with Bank Secrecy Act and Community Reinvestment Act compliance.
Northwest, which produced lackuster first-quarter results, said it will close all 44 offices of Northwest Consumer Discount Co. by mid-July. The unit’s loans will be transferred to Northwest’s bank for servicing and collections.
The San Francisco bank says it's making strides in regaining the trust of its customers, but winning over new ones — as evidenced by a 9% decline in retail banking profits — remains a struggle.
Chief Executive Officer Stuart Gulliver is still battling to reverse five years of declining revenue as he pares back HSBC’s sprawling global footprint and reduces expenses.
