HSBC Appealing Household International Case

HSBC Holdings, Europe’s largest bank by market value, plans to appeal a $2.46 billion U.S. court verdict against its former Household International unit.

A federal judge in Chicago Thursday ordered the bank to pay $1.48 billion in damages and $986 million in interest, according to court filings.

Household stockholders sued in 2002, alleging the company and three executives made misleading statements about its mortgage-lending practices. The lender had earlier agreed to pay $484 million in fines to settle claims lodged by more than a dozen states.

“This was next legal step in an 11-year-old case,” HSBC spokesman Patrick Humphris said in an e-mailed statement. “We plan to appeal, and we believe we have a strong argument.”

Household was acquired by London-based HSBC in March 2003 for $15.5 billion. It is now known as HSBC Finance Corp.

Article source: http://www.nationalmortgagenews.com/dailybriefing/hsbc-appealing-household-international-case-1039473-1.html

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