HSBC Holdings Plc Brokerage Units & US Bancorp to Settle

HSBC Holdings Plc (NYSE:HBC) and US Bancorp (NYSE:USB) said they will pay a total of $1.78 million to settle charges that the banks failed to tell investors about the risks of auction-rate securities, though the brokerages have never admitted to any wrongdoing.

HSBC Securities USA was charged $1.5 million by the Financial Industry Regulatory Authority (FINRA) for failing to tell customers about the risks involved with auction-rate securities, even after the risks became clear.

According to FINRA, US Bancorp Investments was fined $275,000 for using internal marketing materials that failed to properly disclose the risks related to auction-rate debt.

James Shorris of FINRA said, "The failure of each of these firms to adequately disclose the risks associated with auction-rate securities left customers unprepared for the failure of the auction market."

HSBC closed yesterday at $52.73, and US Bancorp closed yesterday at $27.37.

Category:

News & Politics

Tags:

• HSBC
• US
• Bancorp
• Stock
• News
• FINRA
• USB
• HBC

[cammybammy]

1.5 million is just a piece of dust for  a Multinational corporation