By Josh Beckerman 
 

HSBC Holdings PLC confirmed that it reached a settlement with the Federal Housing Finance Agency, becoming the latest financial firm to settle mortgage-bond lawsuits filed in 2011.

HSBC will pay $550 million. Earlier Friday, The Wall Street Journal reported that the settlement would be between $500 million and $600 million.

Stuart Alderoty, senior executive vice president and general counsel for HSBC North America, said in a statement that "we are pleased to have resolved this matter."

The FHFA alleged that HSBC's U.S. arm failed to disclose adequately the risks on the mortgage bonds it sold to Fannie Mae and Freddie Mac ahead of the financial crisis.

HSBC's settlement is less than the price many of its peers paid to resolve the FHFA's claims. Last month, Goldman Sachs Group Inc. reached a deal with the regulator valued at about $1.2 billion.

On Aug. 4, London-based HSBC said net profit for the first half of the year declined to $9.46 billion from $10 billion in the first half of 2013. The decline was expected by analysts after a poor first quarter for certain businesses. Chairman Douglas Flint said the results showed "a suitably well balanced financial performance" at a time of low interest rates and reduced financial market volumes.

Write to Josh Beckerman at josh.beckerman@wsj.com

Access Investor Kit for HSBC Holdings Plc

Visit http://www.companyspotlight.com/partner?cp_code=A591&isin=GB0005405286

Access Investor Kit for Federal Home Loan Mortgage Corp.

Visit http://www.companyspotlight.com/partner?cp_code=A591&isin=US3134003017

Access Investor Kit for Federal National Mortgage Association

Visit http://www.companyspotlight.com/partner?cp_code=A591&isin=US3135861090

Access Investor Kit for HSBC Holdings Plc

Visit http://www.companyspotlight.com/partner?cp_code=A591&isin=US4042804066

Subscribe to WSJ: http://online.wsj.com?mod=djnwires