$FMCC and FNMA HSBC Says U.S. Mortgage Bond Suit
Post# of 98044
Posted On: 08/05/2013 8:29:55 PM
$FMCC and FNMA
[b][b]HSBC Says U.S. Mortgage Bond Suit Damages May Cost $1.6 Billion[/b][/b]
HSBC Holdings Plc (HSBA), Europe’s largest lender, said possible damages from a lawsuit filed by a U.S. regulator over improperly sold mortgage-backed securities could cost the bank as much as $1.6 billion.
[b]The Federal Housing Finance Agency “alleges that the defendants caused hundreds of millions of dollars in damages to Fannie Mae (FNMA) and Freddie Mac,” the London-based bank said today in its first-half earnings report. “Based upon the information currently available, it is possible that these damages could be as high as $1.6 billion.”[/b]
The FHFA filed a suit in September 2011 over residential mortgage-backed securities sponsored by HSBC. The FHFA sued 17 other banks that year, seeking to recover losses on $196 billion in mortgage-backed bonds sold to Fannie Mae and Freddie Mac, which have operated under U.S. conservatorship since they were seized amid subprime losses in 2008.
Citigroup Inc. reached a settlement with the FHFA in May on a lawsuit over $3.5 billion in bonds the bank sold to Fannie Mae and Freddie Mac. UBS AG said last month it’s close to an agreement.
To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.
To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net
http://www.bloomberg.com/news/2013-08-05/hsbc...cmpid=yhoo
[b][b]HSBC Says U.S. Mortgage Bond Suit Damages May Cost $1.6 Billion[/b][/b]
HSBC Holdings Plc (HSBA), Europe’s largest lender, said possible damages from a lawsuit filed by a U.S. regulator over improperly sold mortgage-backed securities could cost the bank as much as $1.6 billion.
[b]The Federal Housing Finance Agency “alleges that the defendants caused hundreds of millions of dollars in damages to Fannie Mae (FNMA) and Freddie Mac,” the London-based bank said today in its first-half earnings report. “Based upon the information currently available, it is possible that these damages could be as high as $1.6 billion.”[/b]
The FHFA filed a suit in September 2011 over residential mortgage-backed securities sponsored by HSBC. The FHFA sued 17 other banks that year, seeking to recover losses on $196 billion in mortgage-backed bonds sold to Fannie Mae and Freddie Mac, which have operated under U.S. conservatorship since they were seized amid subprime losses in 2008.
Citigroup Inc. reached a settlement with the FHFA in May on a lawsuit over $3.5 billion in bonds the bank sold to Fannie Mae and Freddie Mac. UBS AG said last month it’s close to an agreement.
To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.
To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net
http://www.bloomberg.com/news/2013-08-05/hsbc...cmpid=yhoo
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