HSBC’s $400 Million Private-Credit Hit Deepens as MFS Fraud Allegations Escalate
Administrators for collapsed UK lender Market Financial Solutions accused owner Paresh Raja in a London lawsuit of misappropriating at least £1.3 billion. HSBC took a $400 million provision tied to MFS, with Barclays also reporting a £228 million hit. Britain’s Financial Conduct Authority opened an enforcement probe into MFS in March. Raja, currently in Dubai, denies the allegations.