HSBC (HSBA) has agreed a $550m (£339m) settlement for having mis-sold mortgage-backed securities to US government-sponsored mortgage vehicles Fannie Mae and Freddie Mac prior to the financial crisis.
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But it could have been worse: just last month HSBC signalled that it was preparing for a hit of up to $1.6bn. "The settlement is, on the face of it, less severe than most prior settlements with other FHFA [Federal Housing Finance Agency] banks," notes analyst Ian Gordon of Investec Securities.
