Oct 9, 2018
HSBC finalises $765m settlement over securities sales
HSBC has finalised a $765m settlement over the sale of mortgage-backed securities in the run-up to the financial crisis. "HSBC chose to use a due diligence process it knew from the start didn't work. It chose to put lots of defective mortgages into its deals. When HSBC saw problems, it chose to rush those deals out the door," he said in a statement announcing the settlement. The justice department said HSBC employees had raised concerns about its due diligence process and the residential mortgage-backed securities it was selling to investors. While the bank told investors it reviewed 20 per cent of the subprime loans it purchased to package into securities based on a "Proprietary model", at times HSBC traders influenced how loans were selected for these reviews, according to the justice department. The settlement suggests HSBC bankers were well aware of problems with the securities the bank was issuing.
Make a complaint about HSBC by viewing their customer service contacts.