GUARDIAN - The Guardian

HSBC Faces $1.1 Billion Loss from Madoff Lawsuit Settlement HSBC has warned that settling a lawsuit tied to the Bernard Madoff Ponzi scheme could take years, impacting its profits by $1.1 billion. The bank's pre-tax profits dropped 14% to $7.3 billion for the three months ending September 30, due to the provision and increased operating costs. HSBC's involvement stems from providing services to funds invested with Madoff Securities. The bank is appealing a court decision against its Luxembourg arm and is preparing further legal action. Additionally, HSBC has set aside $1 billion to address impacts from China's real estate downturn, affecting the banking sector.