British bank HSBC has settled with US regulators to the tune of $550 million (£338 million) over claims it mis-sold mortgage related bonds between 2005 and 2007 to US mortgage giants Fannie Mae and Freddie Mac.

HSBC has settled with US regulators to the tune of $550 million over claims it mis-sold mortgage related bonds between 2005 and 2007 to US mortgage giants Fannie Mae and Freddie Mac.

It comes comes less than three weeks before a trial is due to begin in New York and means HSBC is now the 16th bank to reach an agreement with the Federal Housing Finance Agency (FHFA) over the issue. The FHFA has recouped $17.9 billion so far from settlements.

Nomura and Royal Bank of Scotland have still not settled their cases.

The lawsuit against HSBC states that the bank failed to meet regulatory guidelines and standards for $6.2 billion of mortgage-backed securities to Fannie Mae and Freddie Mac. HSBC admitted no wrongdoing as part of the settlement.

Under the settlement HSBC will pay $374 million to Freddie Mac and $176 million to Fannie Mae, the FHFA said.

“We are pleased to have resolved this matter,” said Stuart Alderoty, senior executive vice president and general counsel for HSBC North America.

Last month Goldman Sachs Group agreed to a $1.2 billion settlement while US banking giant Bank of America reached a $9.5 billion settlement with the FHFA last March.