HSBC’s £582m penalty

HSBC has agreed a £582m settlement with US regulators over claims it mis-sold toxic mortgages in the runup to the financial crisis.

The Department of Justice said investors suffered major losses backing socalled Residential Mortgage Backed Securities (RMBS) issued and underwritten by HSBC between 2005 and 2007.

‘HSBC made choices that hurt people and abused their trust,’ said Bob Troyer, US Attorney for the District of Colorado.

An HSBC spokesman said that it will pay the penalty ‘without admitting liability or wrongdoing’.