(Adds HSBC reaction)
PARIS, June 15 (Reuters) - A French appeals court hasreduced a 1 billion euro ($1.1 billion) bail for HSBC Holdings in a tax fraud case to 100 million euros, a sourceclose to the matter said on Monday.
The decision offers the bank some relief as various tax,regulatory and legal authorities look into allegations that itsSwiss private bank helped conceal millions of dollars in assets.
French prosecutors had called on judges to confirm thebillion euro bail to cover a potential fine over allegationsthat Swiss private bank had helped clients avoid taxes in2006-2007.
That sum would have been nearly half the value of HSBC'salleged fraud of 2.2 billion euros, according to a source whenthe bail was initially ordered. HSBC appealed the bail, callingit excessive.
Under French court processes, companies can be ordered topost a deposit when they are put under formal investigation,even if charges are not brought.
"The HSBC group takes note of the appeals court decisionwhich partially upholds the appeal lodged in April," a spokesmansaid.
HSBC Holdings was put under formal investigation in Francein April on suspicions that the parent company did not exercisesufficient controls on the activities of its Swiss private bank.
HSBC has admitted failings in controls at the Swiss privatebank, but has denied knowledge of fraudulent activity.
($1 = 0.8921 euros) (Reporting by Chine Labbe, writing by Leigh Thomas; editing byJohn Irish)
HSBC Holdings (HSBA)
