HSBC fined $470 million for 2008 financial crisis, no one jailed

‘Multinational bank HSBC has agreed to a $470 million settlement with the U.S. government for mortgage lending and foreclosure abuses that worsened the 2008 financial crisis, but is it enough?

The Justice Department’s Acting Associate Attorney General Stuart F. Delery said the agreement was “the result of a coordinated effort between federal and state partners to hold HSBC accountable for abusive mortgage practices. This agreement provides for $370 million in creditable consumer relief to benefit homeowners across the country and requires HSBC to reform their servicing standards.”

Under the agreement HSBC must reduce mortgage interest rates as well as the principal on mortgages for homeowners who are at risk of default. HSBC must also improve their standards for handling service loans and foreclosures. The hope is that new practices will discourage the actions that lead to the financial crisis that started in 2007 due to banks like HSBC knowingly giving out bad loans.’

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