LONDON May 4 HSBC's deferred prosecution
agreement (DPA) with the U.S. Department of Justice may impact
the bank's ability to repatriate some $8 billion in capital the
lender has 'trapped' in the country, its finance director said
HSBC paid its first dividend in 10 years from its U.S.
subsidiary to its parent in Britain in April, it said on
Thursday, while announcing first quarter results.
"It would be unusual if the DPA's existence did not reflect
on the capital position," Chief Financial Officer Iain Mackay
told analysts on a conference call, adding that it would be
"naive" of the bank to think otherwise.
Reuters in September 2016 reported that the DPA's existence
could impact the bank's plans to move capital home from the
The DPA is with the Justice Department while decisions about
the capital plans of foreign banks in the United States are
overseen by the Federal Reserve.
HSBC struck the deferred prosecution agreement in 2012 with
the Department of Justice under which it would not be heavily
punished for failures in anti-money laundering efforts, subject
to the bank committing to improve controls.
(Reporting by Lawrence White; editing by Jason Neely)