HSBC pays $550 million to resolve mortage claim

A British bank HSBC has agreed to pay $550 million to Fannie and Freddie.During the housing boom, Fannie and Freddie also invested in securities issued by HSBC and others. Many of those securities later soured, sticking Fannie and Freddie with losses.HSBC said all principal and interest payments to date have been made on the securities in the settlement.The companies had provided guarantees to make investors whole if loans default.