HSBC warns it could take years to settle Madoff case as bank takes $1.1bn hit

Lawsuit over Ponzi scheme drags on London-headquartered lender, whose profits plunge by 14%

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HSBC has warned it could take years to finally settle a lawsuit over the Bernard Madoff Ponzi scheme, as the bank’s profits fell 14% after it took a $1.1bn (£830m) hit on the 2009 scandal.

The London-headquartered bank’s finance chief issued the warning as the provision for the case dragged on HSBC profits, offsetting a jump in income in the three months to the end of September.

HSBC has so far taken a $1.1bn provision to cover a lawsuit by investors who lost money in the largest Ponzi scheme in history.