HSBC Takes $1.1 Billion Hit on Madoff Fraud Litigation

HSBC Holdings Plc will set aside $1.1 billion to cover litigation by investors who lost money in Bernard Madoff’s fraud, the latest global bank to face a significant hit from litigation dating back years.

The provision will be recognized in HSBC’s upcoming third-quarter results, and will have an impact of around 15 basis points on the group’s common equity tier 1 capital ratio, according to a statement on Monday.