HSBC reaches US$10M settlement over allegations that it failed to oversee reasonableness of charges it submitted to US government in connection with foreclosures, says US attorney

NEW YORK , July 1, 2014 () – HSBC Holdings Plc has reached a $10 million settlement of allegations that it failed to oversee the reasonableness of charges it submitted to the U.S. government in connection with foreclosures, the office of U.S. Attorney Preet Bharara said on Tuesday.

The accord resolves U.S. claims under the federal False Claims Act concerning HSBC's alleged failure to oversee the reasonableness of foreclosure-related charges submitted to the U.S. Department of Housing and Urban Development, the office said.

Bharara's office has been investigating several banks over whether they overcharged the government for expenses incurred during foreclosures on federally backed home loans.

(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama)

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