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...
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