29th Aug 2014 06:47
LONDON (Alliance News) - A new US ruling means that HSBC Holdings PLC and Nomura Holdings Inc have been unable to block mortgage-related claims on the basis that they were brought too late, which clears the way for a trial of HSBC over residential mortgage-backed securities sold to Fannie Mae and Freddie Mac, Bloomberg reported Thursday.
According to Bloomberg, US District Judge Denise Cote reaffirmed earlier rulings that claims by the Federal Housing Finance Agency aren?t barred by laws limiting the time in which suits must be filed. The Federal Housing Finance Agency sued the banks over residential mortgage-backed securities sold to Fannie Mae and Freddie Mac.
This means the Federal Housing Finance Agency will be able to go forward with a trial next month, according to the report. It also said that HSBC could be found liable for up to USD1.6 billion, citing the bank.
"It also puts added pressure on HSBC to settle," the report said.
Nomura?s trial is scheduled for next year.
http://www.bloomberg.com/news/2014-08-28/hsbc-nomura-lose-bid-to-block-u-s-regulator-lawsuits.html
By Samuel Agini; [email protected]; @samuelagini
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