Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  HSBC Holdings Plc    HSBA   GB0005405286

HSBC HOLDINGS PLC

(HSBA)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

HSBC : to Pay $1.58 Billion to Settle Shareholder Suit -- Update

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/16/2016 | 09:14pm EDT
By Maria Armental 

A unit of British bank HSBC Holdings PLC has reached a preliminary agreement to pay $1.58 billion to settle a shareholder class-action complaint over securities fraud tied to the bank's U.S. subprime lending.

The proposed settlement -- which would cover those who owned Household International stock anytime between March 23, 2001, and Oct. 11, 2002 -- is subject to court approval. HSBC estimated it would book a $585 million charge, before taxes, in the second quarter.

The London-based bank, Europe's largest by assets, had previously estimated the financial exposure from the shareholder claims at around $3.6 billion.

A tentative agreement was reached on June 6, just hours before jury selection was to start, said Mike Dowd and Dan Drosman, partners with Robbins Geller Rudman & Dowd LLP and lead trial lawyers for the plaintiffs, including one-time investment firm Glickenhaus & Co., PACE Industry Union Management Pension Fund, and the International Union of Operating Engineers Local No. 132 Pension Plan.

"We are obviously delighted with the result after 14 years," Mr. Dowd said.

The case was filed in August 2002 against Household International Inc., the predecessor of HSBC Finance, and accused the company and three former executives of misrepresenting the interest rates it charged consumers for loans and hiding prepayment penalties in loan terms. That summer, Household International, at the time one of the largest U.S. lenders to people with poor credit history, had to restate nine years of financial results, lower profit by $386 million.

HSBC paid more than $16 billion in 2003 for the Illinois-based consumer lender, in what was seen as a bold move to expand in the U.S. But the bank, which headed into the financial crisis with $160 billion of U.S. subprime mortgages, later retreated after big losses.

Write to Maria Armental at maria.armental@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HSBC HOLDINGS PLC
02:03pCitigroup, BNP caught up in U.S. case against Huawei CFO - documents
RE
02:00pCitigroup, BNP caught up in U.S. case against Huawei CFO - documents
RE
10:17aCourt Documents Tie Huawei to Iran, Syria, Sudan, Describe New Banking Links
DJ
06:29aBankers hawk hedging as trade war hits China's yuan
RE
03:42aGoldman moves to take majority control of China joint venture
RE
08/20Singtel Raises US$750 Million via 10-Year Notes
DJ
08/20LONDON STOCK EXCHANGE : Worries over global trade, Italy lead FTSE 100 lower
RE
08/20HSBC : Solidarity to End Sanctions Welcome
AQ
08/19SAUDI BASIC INDUSTRIES SJSC : Aramco asks banks to pitch for roles in IPO - sour..
RE
08/19SAUDI ARAMCO ASKS BANKS TO PITCH FOR : sources
RE
More news
Financials (USD)
Sales 2019 55 765 M
EBIT 2019 22 729 M
Net income 2019 14 584 M
Debt 2019 -
Yield 2019 7,03%
P/E ratio 2019 10,2x
P/E ratio 2020 9,97x
Capi. / Sales2019 2,63x
Capi. / Sales2020 2,56x
Capitalization 147 B
Chart HSBC HOLDINGS PLC
Duration : Period :
HSBC Holdings Plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends HSBC HOLDINGS PLC
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 25
Average target price 8,21  $
Last Close Price 7,26  $
Spread / Highest target 50,5%
Spread / Average Target 13,1%
Spread / Lowest Target -9,65%
EPS Revisions
Managers
NameTitle
John M. Flint Group Chief Executive Officer & Executive Director
Mark Edward Tucker Non-Executive Group Chairman
Andrew Mitchell Maguire Group Chief Operating Officer
Ewen James Stevenson Executive Director & Group Finance Director
Darryl West Chief Information Officer
Sector and Competitors
1st jan.Capitalization (M$)
HSBC HOLDINGS PLC-7.73%146 381
JP MORGAN CHASE & COMPANY9.93%343 071
INDUSTRIAL AND COMMERCIAL BANK OF CHINA2.46%261 632
BANK OF AMERICA10.67%248 718
WELLS FARGO & COMPANY-3.04%196 865
CHINA CONSTRUCTION BANK CORPORATION9.73%185 138