Back in December 2013, when star trial lawyer David Boies entered an appearance for HSBC Holdings plc in the mortgage-backed securities litigation brought by the Federal Housing Finance Agency, the move signaled that HSBC just might be willing to fight to the finish. But like more than a dozen bank defendants before it, HSBC instead opted Friday to end its case with a megabucks settlement.
According to the settlement agreement, HSBC will pay $550 million to resolve claims that it made misrepresentations regarding mortgage-backed securities it sold to Fannie Mae and Freddie Mac before the financial crisis. Of all the banks sued by the FHFA, only two have yet to settle: Nomura Holdings Inc. and Royal Bank of Scotland Group plc.
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