HSBC expects $400 million loss from alleged MFS fraud
Updated
Updated · The Wall Street Journal · May 5
HSBC expects $400 million loss from alleged MFS fraud
18 articles · Updated · The Wall Street Journal · May 5
The exposure stemmed from a U.K. “back leverage” loan to an Apollo-linked vehicle, with HSBC saying CFO Pam Kaur relied on the sponsor’s due diligence.
Court and corporate filings show layers of Irish and U.K. entities between HSBC and about 525 property loans tied to collapsed broker Market Financial Solutions.
The case has intensified scrutiny of hidden risks in the $3 trillion private-credit market, where Barclays and Santander also face MFS-related exposure and regulators warn over opaque interlinkages.
HSBC’s profits slipped despite record revenue. Can its AI and cost-cutting strategy truly fix the bottom line?
HSBC pivots to Asia as Middle East conflict looms. Is this a masterstroke for growth or a reckless exposure to global risk?