HSBC Fined Record $16M For Bilking Elderly Clients

Law360, New York (December 5, 2011, 3:01 PM EST) -- British authorities hit HSBC Holdings PLC with a record £10.5 million ($16.4 million) fine Monday for allegedly selling investments to elderly customers who were unlikely to live out the recommended time period for the financial products.

HSBC subsidiary NHFA Ltd. sold asset-backed bonds to nearly 2,500 people who were entering, or already in, long-term care, according to the Financial Services Authority. The products were billed as a way for the customers to pay for their extended care, but they made for poor investments for most of...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.