HSBC Halts Foreclosures Amid US Repo Probe

Law360, New York (March 1, 2011, 11:19 PM EST) -- HSBC Holdings PLC is suspending foreclosures after an initial investigation by state and federal officials found deficiencies in the bank's home repossession procedures, according to HSBC's annual report released Monday.

The Federal Reserve Board and the U.S. Department of the Treasury's Office of the Comptroller of the Currency, as part of a broad review of industry practices, found problems in the foreclosure proceedings at HSBC Finance Corp. and HSBC Bank USA NA, the report says.

The federal agencies noted problems in the processing, preparation and signing...
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