HSBC Holdings (LSE:HSBA) has set aside $1.1 billion to cover potential liabilities arising from a lawsuit in Luxembourg connected to Bernard Madoff’s Ponzi scheme, one of the largest financial frauds in U.S. history. The legal action involves a claim brought by Herald Fund SPC seeking restitution of securities and cash related to the Bernard L. Madoff Investment Securities LLC fraud.
The Luxembourg Court of Cassation recently denied HSBC’s appeal regarding Herald’s securities restitution claim but accepted the subsidiary’s appeal on the cash restitution claim. The bank confirmed that it continues to defend the case through its subsidiary, while the reserve aims to ensure sufficient coverage for potential outcomes.
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HSBC Holdings is one of the world’s largest banking and financial services organizations, headquartered in London. It serves customers globally through retail banking, wealth management, commercial banking, and investment banking operations. The bank has a strong international presence across Europe, Asia, the Americas, the Middle East, and Africa.
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