NEW YORK, Sept 12 (Reuters) - HSBC Holdings Plc isexpected to pay $550 million to resolve a U.S. regulator'sclaims the bank made false representations in selling mortgagebonds to Fannie Mae and Freddie Mac beforethe financial crisis, a person familiar with the matter saidFriday.
A settlement could be announced as soon as later Fridaybetween HSBC and the Federal Housing Finance Agency, theconservator for the two government-controlled mortgage financecompanies, the person said.
The deal came less than three weeks before a scheduled Sept.29 trial in New York, where HSBC has said it could have faced upto $1.6 billion in damages. (Reporting by Nate Raymond in New York; Editing by MeredithMazzilli)
HSBC Holdings (HSBA)
