HSBC could be effected by new US rules

One new rule would eliminate the ability of bank holding companies to keep less capital than their bank subsidiaries. That would have an impact on the use of trust preferred securities, known as TRUPs. TRUPs count toward equity when calculating capital ratios – — the bank’s cushion against losses — while being treated like bonds …

FINRA fines HSBC $1.5 Million

The Financial Industry Regulatory Authority fined units of HSBC Holdings PLC in a settlement of cases related to the sale of auction-rate securities that became illiquid when auctions froze in February 2008. HSBC neither admitted or denied the charges, but consented to Finra’s findings under the settlement. HSBC was fined $1.5 million and has repurchased …