SFO considering banks probe

The Serious Fraud Office is looking into the allegations against UK institutions made by the US Federal Housing Finance Agency (FHFA). It said it has not decided whether to launch its own formal investigation but will keep abreast of developments in the US.

The FHFA is suing 17 banks and financial institutions over alleged misrepresentation of asset-backed securities worth in excess of $190bn to mortgage giants Fannie Mae and Freddie Mac prior to their near-collapse in 2008.