British bank HSBC has actually consented to pay $550 million to resolve U.S. claims that it misled U.S. mortgage titans Fannie Mae and Freddie Mac about risky home mortgage safeties it sold them just before the real estate market collapsed in 2007.

The Federal Housing Finance Agency, which supervises Fannie and also Freddie, revealed the negotiation Friday with HSBC. London-based HSBC is Europe's largest bank and has comprehensive procedures in the UNITED STATE Its U.S. division has around $289 billion in possessions, making it the 9th largest bank in the UNITED STATE.

HSBC sold the securities to the 2 home loan companies in between 2005 and 2007. Under the negotiation, HSBC is paying $176 million to Fannie and also $374 million to Freddie.

'We are pleased to have actually solved this concern,' Stuart Alderoty, HSBC North America's senior executive vice head of state and basic guidance, said in a statement.

The settlement is the current federal government agreement over activities associated with the economic crisis that struck in 2008. The meltdown, activated by substantial sales of risky mortgage securities, dove the economic situation into the deepest economic downturn because the Great Depression.

The securities soured after the housing bubble burst in 2007, losing billions in value.

The federal government saved Fannie and also Freddie at the elevation of the monetary crisis in September 2008 when they were on the brink of collapse. The companies received taxpayer aid totaling $187 billion. They have actually because become rewarding as well as paid back the full bailouts.

The FHFA sued 18 bank's in 2011 over their sales of home mortgage securities to Fannie and Freddie. The total price for the safeties offered was $196 billion. The agency said Friday it has now gotten to settlements with all about two of the bank's.

A number of huge banks, including of Goldman Sachs, JPMorgan, Bank of America and also Citigroup, previously have been accused of abuses in sales of securities linked to mortgages in the years leading up to the dilemma. With each other, they have actually paid hundreds of millions in charges to resolve civil costs brought by the Securities and Exchange Commission, which implicated them of deceiving financiers concerning the high quality of the bonds they sold.

Goldman agreed in 2010 to pay $550 million to settle the SEC's charges, the largest fine versus a Commercial firm in the agency's history.

In current months, the Justice Department and also state regulators have actually gotten to multibillion-dollar agreements over home loan securities with JPMorgan, Citigroup and also Bank of America. One of the most current was announced last month with Bank of America, the second-largest U.S. bank, which is paying a record  $16.65 billion - $7 billion of it set aside for customer alleviation.