HSBC will pay $765 million to settle allegations that it sold defective residential mortgage-backed securities, resolving one of the last remaining U.S. investigations stemming from the mortgage meltdown a decade ago.
Bloomberg News reports that the sum, announced Tuesday by U.S. Attorney Bob Troyer in Colorado, is substantially lower than the billions paid by other banks to resolve misconduct linked to these toxic securities. London-based HSBC wasn’t a major player in the market.
With Wells Fargo’s agreement in August to pay $2 billion and Royal Bank of Scotland Plc’s deal to pay $4.9 billion that same month, the U.S. Department of Justice is now near the end of its decade-long effort to extract penalties for the conduct that led to the financial crisis of 2008.
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