HSBC, Europe’s largest bank, has agreed the settlement with the US Department of Justice (DoJ) in order to bring to a close an investigation into its sale of mortgage-backed securities in the prelude to the 2008 financial crisis. The settlement, which relates to the manner in which HSBC packaged toxic bonds from 2005 to 2007, is smaller than the $2bn penalty the DoJ agreed with Royal Bank of Scotland and the $4.9bn it agreed with Barclays. The settlement emerged as HSBC revealed a 4.6% rise in H1 profits before tax to $10.7bn, following restructuring.
HSBC, Europe’s largest bank, has agreed the settlement with the US Department of Justice (DoJ) in order to bring to a close an investigation into its sale of mortgage-backed securities in the prelude to the 2008 financial crisis. The settlement, which relates to the manner in which HSBC packaged toxic bonds from 2005 to 2007, is smaller than the $4.9bn penalty the DoJ agreed with Royal Bank of Scotland and the $2bn it agreed with Barclays. The settlement emerged as HSBC revealed a 4.6% rise in H1 profits before tax to $10.7bn, following restructuring.