HSBC announced on Monday that it will recognize a provision of $1.1 billion in its third-quarter results following a court ruling in Luxembourg related to the Bernard Madoff investment fraud case.
Herald Fund SPC sued HSBC’s Luxembourg unit in 2009, seeking restitution of securities and cash it claimed were lost in the fraud. The court denied the HSBC unit’s appeal regarding Herald’s securities restitution claim but accepted the unit’s appeal concerning the cash restitution claim.
The bank plans to pursue a second appeal before the Luxembourg Court of Appeal. HSBC also stated that if this appeal is unsuccessful, it would challenge the amount to be paid in subsequent proceedings.
In its interim report for 2025, released in July, HSBC revealed that Herald had claimed restitution of securities and cash totaling $2.5 billion plus interest, or alternatively, damages amounting to $5.6 billion plus interest.
HSBC explained that various non-U.S. HSBC entities provided custodial, administration, and similar services to several funds whose assets were invested with Bernard Madoff Investment Securities.
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https://www.cnbc.com/2025/10/27/hsbc-1point1-billion-in-provision-third-quarter-madoff-case.html