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Pin to quick picksHSBC Holdings Share News (HSBA)

Share Price Information for HSBC Holdings (HSBA)

London Stock Exchange
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Share Price: 690.90
Bid: 691.50
Ask: 691.70
Change: -29.90 (-4.15%)
Spread: 0.20 (0.029%)
Open: 700.00
High: 701.10
Low: 690.90
Prev. Close: 720.80
HSBA Live PriceLast checked at -

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HSBC To Pay USD550.0 MIllion To Settle US Mortgage Claims

Mon, 15th Sep 2014 05:34

LONDON (Alliance News) - The US unit of HSBC Holdings PLC Friday agreed to pay USD550.0 million to settle claims over the sale of residential mortgage-backed securities purchased by Fannie Mae and Freddie Mac in the years leading up to the financial crisis.

The settlement is lower than the maximum amount previously indicated by the bank holding company in its August 2014 half-year results statement, when it said: "It is possible that HSBC could be found liable to pay damages; and based upon the information currently available, it is possible that those damages could be as high as USD1.6 billion."

In a statement, The Federal Housing Finance Agency, which regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks - the government-sponsored enterprises that provide more than USD5.6 trillion in funding for the US mortgage markets and financial institutions - said HSBC North America Holdings Inc will pay USD374.0 million to Freddie Mac and USD176.0 million to Fannie May to resolve claims that it violated securities laws when it sold the securities.

"We are pleased to have resolved this matter," Stuart Alderoty, general counsel for HSBC North America, said in a statement. HSBC ceased US issuance and distribution of residential mortgage-backed securities in 2007.

The case is one of 18 lawsuits filed by the agency in 2011. The FHFA's settlement with HSBC means it has now agreed USD17.87 billion of settlements with institutions including Citigroup Inc, UBS Americas Inc, JP Morgan & Chase Co, Deutsche Bank AG, Morgan Stanley, Credit Suisse Holdings (USA) Inc, Bank of America Corp, Barclays Bank PLC, and Goldman Sachs & Co.

HSBC was not among institutions alleged to have committed fraud.

The two remaining cases involve Nomura Holding America Inc and The Royal Bank of Scotland Group PLC.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

Copyright © 2014 Alliance News Limited. All Rights Reserved.

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