HSBC Agrees to Pay $550 Million to End U.S. Mortgage Claims
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HSBC Holdings Plc will pay $550 million to resolve accusations of misconduct in its handling of mortgage securities sold to taxpayers before the financial crisis.
The U.S. unit of the London-based lender, HSBC North America Holdings Inc., reached the deal to end Federal Housing Finance Agency claims that the firm sold faulty mortgage bonds to Fannie Mae and Freddie Mac from 2005 to 2007, the bank said today in a statement. Fannie Mae will receive $176 million and Freddie Mac will get $374 million, according to a separate statement from FHFA.