HSBC BANK USA REG. AGREEMENT

HSBC Holdings PLC
01 May 2003

                 HSBC BANK USA ENTERS INTO REGULATORY AGREEMENT

HSBC Bank USA today announced that it has entered into an agreement with the
Federal Reserve Bank of New York and the New York State Banking Department to
enhance its compliance with anti-money laundering requirements. The Bank has
agreed to a number of improvements to its compliance, reporting, and review
systems and procedures.

Youssef A Nasr, president and CEO, said: "HSBC has a long history of cooperation
with regulators in the more than 80 countries and territories in the world in
which we operate. We are working with the Federal Reserve and the New York State
Banking Department to ensure that we meet or exceed all requirements. We are
taking a number of steps to upgrade our systems and procedures in furtherance of
our common goal of assuring that we have in place state-of-the-art policies,
diligence practices and internal controls. This is our highest priority."

Notes to editors:

HSBC Holdings plc

HSBC Bank USA has more than 400 branches in New York State, giving it the most
extensive branch network in New York. The bank also has eight branches in
Florida, two in Pennsylvania, four in California and 15 in Panama.

HSBC Bank USA is the 11th largest US commercial bank ranked by assets and is a
subsidiary of HSBC USA Inc, an indirectly-held, wholly-owned subsidiary of HSBC
Holdings plc (NYSE: HBC). Headquartered in London, and with over 9,500 offices
in 80 countries and territories, the HSBC Group is one of the world's largest
banking and financial services organisations.

For more information about HSBC Bank USA and its products and services visit
www.us.hsbc.com.


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