HSBC to recognize $1.1 billion provision in third quarter after court ruling in Madoff case

Core Viewpoint - HSBC will recognize a provision of $1.1 billion in its third quarter results due to a court ruling related to the Bernard Madoff investment fraud case [1] Group 1: Legal Proceedings - The court denied HSBC's Luxembourg unit's appeal regarding the restitution of securities but accepted the appeal concerning the cash restitution claim [2] - HSBC plans to pursue a second appeal before the Luxembourg Court of Appeal and may contest the amount to be paid in subsequent proceedings if unsuccessful [2] Group 2: Financial Implications - Herald Fund SPC has claimed a restitution of $2.5 billion plus interest or damages of $5.6 billion plus interest from HSBC [3] - Various non-U.S. HSBC companies provided custodial and administration services to funds that invested with Bernard Madoff Investment Securities [3]