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HSBC agrees to pay $550m to US regulator
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11094145/HSBC-agrees-to-pay-550m-to-US-regulator.html
The bank has resolved claims over mortgage bonds sold ahead of the financial crisis
HSBC agrees to pay $550m to US regulator
By Ben Martin
1:27PM BST 13 Sep 2014
HSBC has agreed to pay $550m (£338m) to American regulators to resolves claims that it made false representations when it sold mortgage bonds in the run-up to the financial crisis.
The British bank said on Friday that its HSBC North America Holdings division had reached a settlement with the Federal Housing Finance Agency (FHFA) over accusations that it had mis-sold the bonds to US mortgage groups Fannie Mae and Freddie Mac from 2005 and 2007.
The regulator filed lawsuits against 18 banks in 2011 to recoup losses taken by the taxpayer after the two mortgage companies were sold the bonds. The US government took control of Both Fannie Mae and Freddie Mac in 2008.
Some £17.9bn has been recovered by the FHFA so far and HSBC is the sixteenth bank to have settled with the American regulator over the matter.
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No bankers have yet done the perp walk....
