PARIS, Feb 1 (Reuters) - London-based bank HSBC haslost its appeal against the launch of a formal investigation inFrance into allegations it helped customers dodge tax, twosources told Reuters on Monday.
The bank was put under formal investigation last year onsuspicions that the parent did not exercise sufficient controlson the activities of its Swiss private bank in 2006 and 2007.
"The court has decided to reject HSBC's requests," one ofthe sources said.
In France a formal investigation often, but notautomatically, leads to a trial.
HSBC has admitted failings in controls at the Swiss privatebank, but denied knowledge of wrongdoing.
"We are disappointed with the outcome of this proceduralappeal. We will continue to defend ourselves vigorously," thebank said in an emailed statement.
Magistrates had previously estimated the Swiss arm's allegedfraud at around 2.2 billion euros ($2.4 billion.)
($1 = 0.9189 euros) (Reporting by Gérard Bon, Matthieu Protard; Writing by MatthiasBlamont; Editing by Andrew Callus and David Evans)
HSBC Holdings (HSBA)