OREANDA-NEWS. Item 8.01 and Item 9.01 - On February 5, 2016, HSBC North America Holdings Inc. ("HSBC North America") and certain subsidiaries (together "HSBC US") reached a national mortgage settlement ("NMS") with the Department of Justice, the Department of Housing and Urban Development, the Consumer Financial Protection Bureau, various other federal agencies and the attorneys general from 49 states and the District of Columbia. HSBC US' financial commitment under the NMS is $470 million comprised of a $100 million cash payment to be allocated among participating federal and state parties and $370 million in customer relief. All except $32 million of the $470 million commitment is allocable to HSBC Finance Corporation ("HSBC Finance"). Separately, a $131 million civil money penalty ("CMP") was assessed by the Federal Reserve Board ("FRB") against HSBC North America and HSBC Finance in conjunction with the FRB's April 2011 foreclosure consent order. The CMP will be satisfied by the financial commitments of HSBC Finance under the NMS. The settlement and the CMP will not cause HSBC Finance to take any additional charges to income beyond those recorded in prior years.