HSBC sued over asset-backed commercial paper, subprime

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HSBC Holdings Plc’s Canadian unit became the first financial adviser in the country to be sued over investments in asset-backed commercial paper that were frozen following the U.S. subprime mortgage industry collapse.

Aastra Technologies Ltd., which makes telecommunications equipment, filed the suit today in Ontario Superior Court, alleging HSBC and adviser Nicolas Del Sorbo gave bad advice in recommending asset-backed commercial paper investments. The assets have been frozen since August. Asset-backed commercial paper consists of short-term notes issued by special-purpose trusts created to hold longer-term investments.

Del Sorbo “acted negligently in failing to perform the necessary investigations” of the investments, Aastra said in its complaint. “But for Del Sorbo’s representations, Aastra would not have made the investment.”

This article, HSBC sued over asset-backed commercial paper, subprime, is just one of our articles from our Bank Horror Stories, HSBC Secrets Part 3

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  1. [...] As reported by Household – HSBC Watch and others, HSBC Holdings Plc’s Canadian unit became the first financial adviser in the country to be sued over investments in asset-backed commercial paper that were frozen following the U.S. subprime mortgage industry collapse. [...]

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  3. [...] By Research HSBC Holdings Plc’s Canadian unit became the first financial adviser in the country to be sued over investments in asset-backed commercial paper that were frozen following the US subprime mortgage industry collapse. … householdwatch.com/wp/2007/10/24/hsbc-sued-over-asset-backed-commercial-paper-subprime Household HSBC Watch householdwatch.com/wp [...]

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