News Column

HSBC Holdings and Nomura are facing September court date over toxic mortgage-backed securities

August 29, 2014

NATE RAYMOND



A US REGULATOR can proceed with lawsuits accusing HSBC Holdings and Nomura Holdings of misleading Fan-nie Mae and Freddie Mac into buying mortgage-backed securities that later turned toxic, a federal judge ruled yesterday.


The decision from US. district court judge Denise Cote in Manhat-tan clears the way for HSBC to face trial on 29 September in a case by the Federal Housing Finance Agency that the bank has estimated could expose it to $1.6bn (965m) in liability.


The agency launched 18 lawsuits in 2011 over about $200bn in mortgage-backed securities. HSBC, Nomura and Royal Bank of Scotland Group are the remaining banks being sued by the regulator.


Other banks have settled ahead of trial, enabling the agency to recover $17.3bn. Goldman Sachs Group became the latest to settle a week ago, agreeing to a deal the agency valued at $1.2bn.


Representatives for HSBC and the agency declined comment. Nomura and RBS, which is a defendant in the case against Nomura, did not immediately comment.


Reuters


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: City A.M. (UK)


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters