Case study summaryProfits of global banking group HSBC fell after it took provisions of more than $1.1 billion to cover losses due to the economic crisis in Argentina. The Argentine crisis is responsible for $1.12 billion in depreciation, which is slightly higher than analysts' forecasts. The figures were in line with analysts' expectations, helping to send HSBC shares up 59p to close at 837p. Last year, Argentina descended into chaos as people protested against draconian policies put in place to try to prevent foreign debt defaults and the devaluation of the peso. Eventually the pressures became too much and Argentina defaulted on its debts and caused the peso to float against the dollar. HSBC took a charge of $520 million to cover losses linked to the change in the value of the peso, as well as a general provision of $600 million for losses in Argentina. Concerns about HSBC's exposure to Argentina's crisis emerged yesterday when it emerged its investment banking arm was preparing to cut its profit forecast for the company. The results of the HSBC Group in 2001, notably the economic crisis in Argentina and the devaluation of the peso by the government which forced HSBC to record a charge of 1.12 billion dollars. Argentina has been a very disappointing foe for HSBC and they have a very talented team and all the necessary elements to succeed in a stabilized economy and have a profitable business. Nevertheless, the situation in Argentina remains both fluid and worrying. The Argentine currency collapse of 2001 was devastating for the economy and for a large number of Argentine citizens. Their currency was pegged to the US dollar at a rate of 1:1, but it fell to 3:1 after the collapse. The resulting default naturally created a storm within the global financial community. However, the fine print of all this is that in Argentina, as everywhere else, the rich have become richer and the poor have become much poorer. Of course, the sanctimonious world press, smelling blood, rushed in. At least there have been some, albeit grudging, admissions of IMF culpability, but, predictably, not from the right. Argentina's government got some respite from the growing economic crisis last night as fears of a free fall for the peso on its first day of trading against the dollar in a decade proved unfounded. After opening at around $2.20, the peso saw a recovery in afternoon trading, crossing the $1.