HSBC has been added to the list of defendants in another class action suit. Although class action suits are nothing new for HSBC - in part thanks to HSBC Finance - January 25th was when HSBC was added to a new suit. New York state officials are suing a total of 26 banks and two accounting firms that did business with Countrywide Financial Corp., saying the companies failed to ensure that Countrywide failed to be honest with investors. Some say this may be a fact finding event for those who want to look at HSBC.
Two of the lead plaintiffs, New York State comptroller Thomas DiNapoli and City comptroller William Thompson Jr., oversee several huge government pension funds that invested in Countrywide securities. “Countrywide’s underwriters had a duty to investigate whether Countrywide was acting honestly,” DiNapoli said. “Investors lost millions, and New Yorkers lost their homes. We can’t sit idly by.” HSBC was an underwriter.
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