View more on these topics

HSBC settles mortgage claim with US regulators for £338m

HSBC will pay $550m (£338m) to US regulators to settle claims it missold mortgage-backed securities to US mortgage giants Fannie Mae and Freddie Mac.

The BBC reports the lawsuit had accused HSBC of making $6.2bn (£3.8bn) of mortgage-backed securities look like they met regulatory guidelines, when they did not. HSBC has previously denied the allegations.

It is the 16th bank to reach an agreement with the Federal Housing Finance Agency over the issue. Royal Bank of Scotland has yet to settle its case.

The FHFA, which oversees Fannie Mae and Freddie Mac, has now recouped $17.9bn (£11bn) from settlements with banks.

HSBC says it is “pleased to resolve the matter”.

Fannie Mae and Freddie Mac lost more than $30bn (£18.5bn) in the financial crisis, and were bailed out by the US government.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com