British bank HSBC Holdings has reached a deal with the U.S. Department of Justice to pay a penalty of $765 million to settle the case on securitization and the sale of mortgage-backed securities with violations that the bank committed in 2005-2007.Embed from Getty Images
As early as 2005, one of the bank’s employees involved in credit risk management expressed concern about the process of checking such securities, but management decided to leave everything unchanged.
"HSBC made decisions that hurt people and abused their trust," said Bob Troyer, US Attorney for the District of Colorado.
HSBC denied the allegations, and under the terms of the deal is not obliged to admit its guilt.
HSBC shares rose 0.2 percent overnight.