Chair of the Public Accounts Committee, Margaret Hodge, called on Rona Fairhead to step down over the bank's tax avoidance revelations.Read the full story ›
George Osborne said HSBC must deal with the "legacy of the past" as he indicated new laws could be needed to deal with tax evaders.
The Chancellor said he had been unaware of allegations that the Swiss arm of HSBC had colluded in tax evasion at the time its former chairman Lord Green was appointed as a trade minister.
Speaking on Radio 4's Today programme, Osborne said the Government was "looking at further changes to the law to make sure that we have a tough regime".
"If there are deficiencies in the law, if it's difficult to bring these prosecutions, then we should change the law," he added.
HSBC chairman Douglas Flint has rejected the suggestion that he and the bank's chief executive Stuart Gulliver should lose their jobs over the current banking scandal.
Asked by MP John Mann at a House of Commons Treasury Committee meeting why he had not sacked Mr Gulliver he said it was because "I think he's doing an excellent job."
HSBC's chief executive Stuart Gulliver has denied allegations the bank applied pressure to The Telegraph so the newspaper would not publicise the story about the banking scandal.
Asked directly if pressure was applied, he said: "No because we realise that actually having a free and vibrant press creates the very body of those publications that supports our advertising and therefore makes them credible for our clients."
The bank did admit though that the newspaper is paid the third biggest chunk of its advertising budget, ITV News' Deputy Political Editor Chris Ship reports:
The list of "regulatory problems" at scandal hit bank HSBC make a "terrible list", the bank's chairman has admitted.
Questioned by MPs over a list of problems at the bank which include PPI mis-selling, interest rate derivative mis-selling, Forex manipulation and violation of international sanctions, HSBC chairman Douglas Flint said it had been "humbling" when the bank's issues emerged.
He said: "It is a terrible list ... One of the most humbling things that has happened in my career is a recognition of all the things you did not know, and you go and say "what could I have known or what should I have known?"
"What these instances have illustrated or brought to the fore is that allowing interpretation at 88 countries as it was at the time is the wrong way to go and we should centralise control."
HSBC are suffering from "horrible reputation damage" the bank's chairman admitted today.
ITV News' Deputy Political Editor Chris Ship has tweeted about the latest developments to emerge from today's House of Commons Treasury Committee meeting:
HSBC Chairman Douglas Flint: we are suffering horrible reputation damage and a bank survives on its reputation #HSBC
HSBC Chairman asked if HSBC is committed to keeping its HQ in the UK? Reply: we are committed to being in the best place for HSBC <<Clear?
HSBC chairman Douglas Flint has said he hopes that no more skeletons will be found in the bank's cupboard in future.
When asked how a line can be drawn under the current banking scandal he admitted there was no easy answer.
He said: "We know what we know, and as investigations take place in other banks and other countries its always possible that something will be uncovered somewhere else where people will say we need to look at this more broadly.
"I sincerely hope there are no more skeletons."
HSBC chairman Douglas Flint has not ruled out the possibility of more problems emerging at the bank.
He told a House of Commons Treasury Committee today that the process of reforming the bank "will always be ongoing".
Stuart Gulliver, HSBC's chief executive, has made assurances that significant changes have been made to the practices at the bank's Swiss subsidiary.
He said the bank is confident they have made considerable changes to HSBC's Swiss private bank saying they have reduced the number of clients the banking arm has from 30,000 to 10,000 and a tax transparency programme is now in place.
HSBC's chief executive Stuart Gulliver has apologised today for "the unacceptable events that took place in our private bank in Switzerland in the mid 2000's."
When asked exactly what he was apologising for Gulliver said: "The lack of controls and practices which now - judged with the benefit of hindsight - we would not be at all comfortable with if they were happening today, and which have clearly resulted in damage to trust and confidence in HSBC and created further reputational damage to our firm and have therefore hurt clients, customers, shareholders, our staff and people at large."
He made the official apology at the start of a House of Commons Treasury Committee meeting where MPs are due to quiz HSBC's bosses over allegations that the bank's Swiss arm helped wealthy customers dodge tax.