HSBC Holdings said it will record a $1.1 billion provision to cover potential losses from an ongoing legal case in Luxembourg linked to the Bernard Madoff investment fraud:
- a subsidiary is defending a claim filed by Herald Fund SPC, which is seeking restitution of securities and cash related to investments tied to Bernard L. Madoff Investment Securities LLC
The case stems from HSBC’s role as a service provider to funds that invested with Madoff, whose $65 billion Ponzi scheme collapsed in 2008, resulting in extensive litigation across jurisdictions.
