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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Hsbc Holdings Plc | LSE:HSBA | London | Ordinary Share | GB0005405286 | ORD $0.50 (UK REG) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.50 | 0.07% | 705.50 | 707.00 | 707.20 | 714.40 | 705.00 | 706.50 | 16,832,512 | 16:35:16 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Offices-bank Holding Company | 65.91B | 23.53B | 1.2338 | 22.85 | 537.71B |
By Margot Patrick
LONDON-- HSBC Holdings PLC agreed Friday to pay $470 million to settle federal and state allegations of abusive practices in its U.S. mortgage business.
The British bank must make major changes to how it services mortgages and handles foreclosures in the U.S. and will compensate some customers who lost their homes or had their loans modified. An independent monitor will oversee its compliance with the agreement for a year.
The civil settlement with the U.S. Justice Department, other federal agencies and U.S. states adds to a list of penalties around HSBC's mortgage lending and servicing business, which authorities say was rife with problems and rushed people out of their homes. HSBC paid $249 million in 2013 to settle similar allegations by the Federal Reserve and the Office of the Comptroller of the Currency.
The alleged abuses took place in the aftermath of the financial crisis when many U.S. homeowners struggled to keep up with their mortgage payments. Millions lost their homes when a housing bubble inflated by loose lending popped in 2008. Authorities said HSBC will pay $100 million to the federal agencies and states, and around $370 million to borrowers and homeowners through various channels including modifying loan terms.
"There has to be one set of rules for everyone, no matter how rich or how powerful, and that includes lenders who engage in abusive business practices," said New York Attorney General Eric Schneiderman.
The Justice Department "remains committed to rooting out financial fraud and holding bad actors accountable for their actions," said Associate Attorney General Stuart Delery.
U.S. authorities started cracking down on foreclosure procedures around 2010, after some banks were found to be serially submitting bogus mortgage documents when attempting to repossess homes. The same federal agencies and states entered a $25 billion settlement over similar allegations with five large U.S. banks in 2012. The Justice Department said it had been in negotiations with HSBC since then to reach a separate accord.
"We are pleased to have reached this settlement and believe it is a positive result that benefits American homeowners and the U.S. housing industry," said Kathy Madison, chief executive of HSBC Finance Corp. "Throughout the housing market downturn, HSBC stayed focused on home preservation and approached foreclosure as a last resort option, and this agreement affirms our commitment to assisting customers who are facing financial difficulties."
HSBC, across its operations, has paid out billions of dollars in fines and settlements in the past several years, including $1.9 billion over failures in its systems that allegedly allowed drug traffickers and sanctioned nations to move money through its U.S. bank. The settlements have weighed on the bank's earnings and helped jack up its compliance costs. It is due to report full-year results on Feb. 22.
Write to Margot Patrick at margot.patrick@wsj.com
(END) Dow Jones Newswires
February 05, 2016 13:01 ET (18:01 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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