Fraud

Administrators for the failed UK mortgage lender Market Financial Solutions are taking owner Paresh Raja to court in London, alleging he misappropriated at least £1.3 billion. The legal fight adds heat to investigations into the tangled exposures that triggered HSBC’s $400 million private-credit provision. Raja, currently in Dubai, rejects the claims, according to the Financial Times. The allegations arrive just days after HSBC Chair Brendan Nelson assured shareholders the bank had “substantially completed” its review of lending policies following the provision. Nelson noted HSBC examined similar facilities for lessons and, at this point, considers the issue a “one-off rather than anything systemic.”