HSBC Loses $400 Million to Private Credit Fraud

HSBC took a $400 million expected credit loss (ECL) in the first quarter due to what it called “fraud-related, secondary, securitization exposure with a financial sponsor in the UK” in the bank’s Corporate and Institutional Banking (CIB) business, according to a Tuesday (May 5) earnings release . The bank’s private credit related exposure totals $22 billion, or about 2% of its loan book, according to a presentation released Tuesday. Within that category, its securitization financing exposure tot