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HSBC to take $1.1 billion hit after Luxembourg court ruling in Madoff case
- On Oct 27, HSBC Holdings said it will recognise a $1.1 billion provision in its third-quarter 2025 results after the Luxembourg Court of Cassation denied HSSL's appeal on October 24.
- Rooted in the Madoff collapse, Herald Fund SPC sued HSBC Securities Services Luxembourg in 2009 seeking restitution of assets lost in fraud involving about US$65 billion.
- Accounting for the provision, HSBC Holdings estimates a 15 basis points reduction in its common equity tier 1 capital ratio and said the charge is a material notable item without affecting full-year return on tangible equity excluding notable items or dividend payout.
- HSSL will now pursue a second appeal before the Luxembourg Court of Appeal, and HSBC said it would contest the payment amount if that appeal fails in subsequent proceedings.
- HSBC Holdings joins other global banks recently hit with legacy litigation costs and has spent the past year cutting jobs before a $14 billion buyout of Hang Seng Bank.
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ABC FOX Montana+30 Reposted by 30 other sources
HSBC profit falls in third quarter, hit by legal woes
HSBC reported a 14 percent drop in third-quarter pre-tax profit on Tuesday, with the banking giant's bottom line weighed down by legal provisions related to the late Bernard Madoff's huge investment fraud.
·Missoula, United States
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HSBC flags $1.1 bn charge linked to Madoff fraud
HSBC bank on Monday revealed a financial charge of $1.1 billion linked to money sought by a European fund caught up in the late Bernard Madoff's huge investment fraud.The London-headquartered lender revealed the fallout amid a Luxembourg lawsuit brought by Herald Fund dating back to 2009, when Madoff was sentenced to 150 years in prison...
Evening Standard+21 Reposted by 21 other sources
HSBC takes £826m hit after Madoff fraud ruling
The London-headquartered lender will put by the provision in third quarter results due to be published on Tuesday.
·London, United Kingdom
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Leaning Left8Leaning Right10Center44Last UpdatedBias Distribution71% Center
Bias Distribution
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71% Center
13%
C 71%
R 16%
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