HSBC settles with FHFA for $550 in MBS securities lawsuit

fhfaThe HSBC announced a $550 million settlement with the Federal Housing Finance Agency last week over claims brought against the financial services company regarding its sale of mortgage-backed securities to Fannie Mae and Freddie Mac.

The FHFA filed the lawsuit against HSBC and more than a dozen other banks in 2011, alleging that HSBC sold the securities with misleading or false statements or omissions, misrepresenting the underlying mortgage loans.

Last Friday’s settlement between the regulator and HSBC is one of seven reached with financial institutions. In February, Morgan Stanley agreed to pay $1.25 billion to settle similar allegations, and Goldman Sachs agreed last month to pay $3.15 billion.

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