Bloomberg News reports that on Thursday U.S. District Judge Denise Cote reaffirmed earlier rulings that claims by the Federal Housing Finance Agency, which sued the banks over residential mortgage-backed securities sold to Fannie Mae and Freddie Mac, aren’t barred by laws limiting the time in which suits must be filed.
The ruling allows the FHFA to go forward with a trial next month in which HSBC could be found liable for as much as $1.6 billion, according to the bank. It also puts added pressure on HSBC to settle. Nomura’s trial is scheduled for next year.
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