A large settlement being negotiated between the government and HSBC Holdings plc over the British bank’s role in the issuance of residential mortgage-backed securities has been finalized.

In August, a filing with the Securities and Exchange Commission indicated that HSBC had reached a settlement in principle with the Department of Justice.

The agreement would resolve alleged involvement by HSBC North America Holdings Inc. and various subsidiaries in the issuance of subprime RMBS.

Source: Mortgage Daily