French judge cuts 1 bln euro HSBC bail in tax fraud case- source

PARIS, June 15 (Reuters) - A French appeals court has reduced a 1 billion euro ($1.1 billion) bail for HSBC Holdings (HKSE: 0005.HK - news) in a tax fraud case to 100 million euros, a source close to the matter said on Monday.

Prosecutors had called on judges to confirm the billion euro bail to cover a potential finance over allegations that HSBC's Swiss private bank had helped clients avoid taxes in 2006-2007. HSBC had appealed the bail, calling it excessive.

Under French court processes, companies can be ordered to post a deposit when they are put under formal investigation, even if charges are not brought.

($1 = 0.8921 euros) (Reporting by Chine Labbe, writing by Leigh Thomas; editing by John Irish)