(11 Dec 2012) SHOTLIST
FILE: Hong Kong - 11 December 2012
1. Wide of HSBC branch in Hong Kong
2. Close-up HSBC sign
3. Wide of Hong Kong Stock Exchange trading floor
4. Mid of electronic share price display screen
5. Close-up of electronic share price display screen
6. Wide of exchange logo on wall, electronic ticker tape above it
7. Close-up of electronic ticker tape display showing price of HSBC shares up 0.35 to 79.80
8. Wide of Francis Lun, Managing Director of Lyncean Holding
9. SOUNDBITE: (English), Francis Lun, Managing Director, Lyncean Holding:
"Well, it is quite a big amount, certainly. But it is smaller than what BP suffered at the hand of the US government. It won't bankrupt the bank. It means it's taking away one quarter of HSBC's profit, so they will have to cut dividend and cut cost to get that back, but it won't cripple the bank and that is the main point."
FILE: Hong Kong - 13 August 2012
10. Wide of HSBC headquarters in Hong Kong
11. Close-up of HSBC sign
FILE: Mexico City, Mexico - 17 July 2012
12. Tilt down from HSBC's headquarters in Mexico City to traffic on street
13. Mid of HSBC sign, traffic policeman in foreground
14. Wide of HSBC sign, reading: (Spanish) "HSBC helps you return to class"
FILE: New York - 17 July 2012
15. Various exteriors of HSBC branch
STORYLINE
HSBC, the British banking giant, will pay 1.9 (b) billion US dollars (1.5 (b) billion euros) to settle a money-laundering probe by federal and state authorities in the United States, a law enforcement official said on Monday.
The probe of the bank - Europe's largest by market value - has focused on the transfer of (b) billions of dollars on behalf of nations like Iran, which are under international sanctions, and the transfer of money through the US financial system from Mexican drug cartels.
According to the official, HSBC will pay 1.25 (b) billion US dollars (1 (b) billion euros) in forfeiture and pay 655 (m) million US dollars (506 (m) million euros) in civil penalties.
The 1.25 (b) billion (US dollars) figure is the largest forfeiture ever in a case involving a bank.
Under what is known as a deferred prosecution agreement, the financial institution will be accused of violating the Bank Secrecy Act and the Trading With the Enemy Act.
The official spoke on condition of anonymity because the source was not authorised to speak about the matter on the record.
Under the deferred prosecution arrangement, HSBC will admit to certain misconduct, the official said, but the details of those admissions to be made in a New York court were not immediately available on Monday.
Nevertheless the deferred prosecution agreement means the bank won't be prosecuted further if it meets certain conditions, such as strengthening its internal controls to prevent money laundering.
The Justice Department has used such arrangements often in cases involving large corporations, notably in settlements of foreign bribery charges.
The law enforcement official said an announcement of the agreement could come as early as Tuesday.
Francis Lun, Managing Director of Lyncean Holding said in Hong Kong that the settlement removed uncertainty for the bank.
"It won't bankrupt the bank. It means it's taking away one quarter of HSBC's profit, so they will have to cut dividend and cut cost to get that back, but it won't cripple the bank. That is the main point," he said.
The share price of HSBC went up 0.25 percent, to 79.65 when the market resumed the afternoon session at 0500GMT.
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