# HSBC said it had taken the charge as a result of a “fraud-related’ exposure to an unnamed company.

*fintech · news · 2026-05-05 · The Telegraph*

## Key points

- HSBC took a $400m loss due to fraud-related exposure to Market Financial Solutions' collapse.
- HSBC's exposure to MFS was indirect, through a financial sponsor, not direct lending.
- Barclays also disclosed a £228m impairment linked to MFS's alleged double-pledging fraud.
- HSBC is reviewing its risk appetite and tightening due diligence in response to the incident.
- HSBC set aside $1.3bn this quarter for credit losses, including $300m for Iran war impacts.

**Companies:** HSBC
**Countries:** United Kingdom

[Read the full story on The Telegraph](https://www.telegraph.co.uk/business/2026/05/05/hsbc-suffers-295m-hit-from-shadow-bank-collapse/)

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