HSBC has speculated it may have to pay to the Federal Housing Financial Authority (FHFA) damages for selling bad mortgage-backed securities.
"Based upon the information currently available, it is possible that these damages could be as high as US$1.6bn", the bank said in its first half earnings report.
Go deeper with GlobalData
The FHFA filed an action in 2011 against HSBC and 17 other banks alleging violations of federal and state securities laws.
The regulator alleged that the defendants caused hundreds of millions of dollars in damages to Fannie Mae and Freddie Mac which purchased residential mortgage banked securities primarily from 2005 to 2008.
In January 2013 three defendants, GE, Citigroup and UBS, settled their lawsuits for undisclosed amounts.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataRelated articles
HSBC announce further job cuts
HSBC to cease retail banking in South Korea
